Giga Mais Prices $350m Debut Dollar Bond

What is Giga Mais Fibra's bond offering about?

Giga Mais Fibra, a fiber-optic internet provider controlled by eB Capital, is pricing its debut US dollar bond on August 6. The company is raising US$350 million through 5.5-year notes with an initial indicated rate around 12%.

What collateral backs the deal?

The bonds carry first-lien security, giving holders priority repayment — after settling some existing debts — over a receivables account and part of the company's fiber network infrastructure.

What will the proceeds be used for?

Giga Mais plans to use the capital to prepay or repurchase existing Brazilian real-denominated debentures, extending its debt maturity profile and reducing refinancing risk.

What do the rating agencies say?

S&P Global assigned a preliminary 'B' rating with stable outlook, while Fitch Ratings gave a 'B+' with stable outlook. Both agencies say the bond issuance should lengthen the company's debt profile and strengthen its cash position. S&P projects EBITDA margins above 50% in coming years — up from 42.1% in 2025 — and expects gross debt/EBITDA leverage to fall to roughly 3.3x by 2028.

What operational challenges has the company faced?

In the second half of 2025, an aggressive growth strategy led to higher-risk customer acquisitions and irregular sales by intermediaries. The subscriber base review caused a revenue dip and one-off costs. Since then, Giga Mais has tightened credit controls, improved customer verification and brought part of its network maintenance in-house.

How is the company performing financially?

First-half 2026 net revenue came in between R$800 million and R$820 million, with EBITDA of R$420–440 million. The company posted a net loss of up to R$15 million in the same period. The figures have not yet been audited by an independent auditor.

Where does Giga Mais stand in the Brazilian market?

Fitch notes that Giga Mais leads or holds second place in most cities where it operates, yet holds only about 2.5% of the Brazilian broadband market, leaving it exposed to competition from national carriers and regional ISPs.