Key information
- SectorTelecom broadcast & towers
- TypeBrownfield transaction
- StrategyDirect lending
- Websitehttps://www.digita.fi/en/
Digita
Investing in a leading independent mobile tower provider in Finland
Direct lending | Finland
2022
Year of investment
€90 million
Size
Finland
Geography
About
In 2022, we invested €90 million as the sole junior lender in Digita, a mobile towers operator and the only provider of Digital Terrestrial Television ('DTT') and radio broadcasting networks in Finland.
Why we invested
The television and radio broadcasting business is resilient and protected in the mid-term due to geographical limitations for other TV broadcasting technologies such as cable, IPTV and satellite. The company also holds a de facto monopolistic position in DTT. The mobile tower platform is growing and highly valuable, driven by the increasing data consumption in Finland and the transition to 5G. The project also offers high cash conversion due to a relatively low capital expenditure plan.
Value creation
Through our close relationship with the sponsor, we were able to negotiate and originate the investment bilaterally. Additionally, the project is largely a brownfield transaction with limited construction risk, which provides stability and reduces potential disruptions. Moreover, the company has recently committed to achieving net-zero emissions by 2030, demonstrating its commitment to environmental sustainability.
Furthermore, the project brings social benefits to the Finnish population by providing 100% of the population with free and universal access to television and radio content. This promotes social inclusion and bridges the rural divide.
Sustainability
DTT is the most environment-friendly way to consume TV, reducing the carbon footprint associated with other broadcasting technologies. The company's commitment to achieving net-zero emissions by 2030 showcases its dedication to environmental sustainability.
Related insights
Important information
Marketing material for Professional Clients only. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.