Brazilian telecommunications tower company Highline, owned by the US-based DigitalBridge group, has successfully raised 2.3 billion reais (approximately US$378 million) through a new debenture issue. The funds will be used to support the construction of new mobile phone towers across Brazil.
In a recent statement, Highline announced that this marks the company’s largest fundraising effort to date, as well as its first issuance of tax-exempt incentivised debentures in the telecommunications infrastructure sector. The transaction was coordinated by Banco Bradesco BBI and was awarded a National Long-Term Rating of ‘A-(bra)’ by Fitch Ratings, highlighting the company’s financial stability and its ability to fulfil its commitments.
These debentures are designed to promote investment by offering exemption from income tax.
Highline is currently the second-largest operator of telecommunications towers in Brazil, trailing only American Tower. The company oversees a network of approx. 14,000 sites across the country. These sites include traditional mobile towers, rooftop installations on buildings, and indoor structures designed to improve coverage in locations such as shopping centres and stadiums.
The company’s business model relies on long-term, take-or-pay contracts with Brazil’s leading mobile network operators, ensuring a stable source of revenue.
Beyond this latest debenture issue, Highline has also recently secured an additional 65 million reais in financing from Brazil's national development bank, BNDES. This funding will be channelled towards the rollout of 4G and 5G mobile towers, with a focus on underserved areas. Specifically, Highline plans to install 145 towers in 124 favelas across Brazil, as well as in rural communities in the states of Bahia, Maranhão, and Piauí.
Highline is backed by a consortium of shareholders, including DigitalBridge, Alberta Investment Management Corporation (Aimco), Allianz insurance company, and the International Finance Corporation (IFC).
Highline and the brazilian tower market
Highline is a major player in Brazil’s rapidly expanding telecommunications infrastructure market. As the second-largest tower operator in the country, the company plays a vital role in meeting the growing demand for mobile connectivity, driven by the rollout of 4G and 5G networks.
Brazil’s telecommunications sector has seen significant investment in recent years, with the increasing demand for data and mobile services. Tower operators like Highline are crucial in enabling mobile carriers to extend their coverage, particularly in rural and underserved urban areas. The company’s solid financial footing and long-term contracts with major operators provide stability in a competitive market.
Brazil's tower market is dominated by a few key players, with American Tower and Highline leading the sector. The growing focus on 5G deployment and improving connectivity in remote regions presents substantial growth opportunities for companies like Highline, as they expand their infrastructure to meet the nation’s evolving telecommunications needs.
