Willemstad, Curaçao – May 28, 2023 – Saturday, May 27, 2023, an article appeared in the local newspaper ‘Amigoe’ about a new bond issue via the Curaçao stock exchange, the Dutch Caribbean Securities Exchange (DCSX). These are corporate bonds of TerraMobile B.V., the new mobile telecommunications provider that has received a concession from the government for the construction, maintenance, and operation of a new network for mobile telecommunications services.
Correct information provision essential – Although PYGG Securities Co. B.V. (PYGG), the company that assists TerraMobile, confirms that the listing was recently approved by the DCSX and that a lot of interest can be expected from both private and institutional investors, several things need to be nuanced in response to the article in the Amigoe. “If we want to develop our capital market in a sustainable way, correct information provision is essential,” says Mr. Lammers, co-owner, and director of PYGG.
No pre-sale of bonds – The preparation for a flying start of a company like TerraMobile requires a lot from entrepreneurs in terms of time and money. These efforts only make sense if there is enough capital available to realize the business plan. Before the concession was issued to TerraMobile, research was carried out into the chances of success for financing via the stock exchange, in addition to the private placement of share capital. Based on the results of the study, it was decided to use the DCSX. That is different from a ‘pre-sale’ of bonds.
Interest – Several investors, including financial institutions, have expressed and in some cases quantified their interest. However, final investment decisions can only be taken after examination of Prospectus, which, if all goes as planned, will become available around 1 June next. It concerns an offer of bonds by TerraMobile with a maturity of 6 years and an interest rate of 7.5% per annum.
Supervision – It is still some time before the green light from the Central Bank of Curaçao and Sint Maarten (CBCS). That green light means permission for TerraMobile to issue bonds in denominations of at least ANG 50,000.00 via the stock exchange (or the equivalent in USD) to professional investors without the need for a (banking or fund) license. It does not mean that TerraMobile is supervised by CBCS (which is true for the DCSX and PYGG). It is the Bureau Telecommunications and Post (BT&P), which monitors TerraMobile’s compliance with (quality) requirements as stated in the mobile telecommunications concession.
Risks – The green light from CBCS and approval by the DCSX also don’t mean that an investment opportunity is ‘safe’. Investing always involves risk. Risk and return go hand-in-hand. Past performance is no guarantee of future results. The green lights mean that the Prospectus complies with the applicable information requirements, including the provision of a clear risk paragraph.
Corporate directory – In addition to PYGG and the DCSX, parties involved with the offering include OX & WOLF Legal Partners as legal advisor and Vidanova as securities depository of the DCSX. TerraMobile’s external auditor will be formally appointed shortly.
About TerraMobile (reserved DCSX Ticker symbol TERRA)
TerraMobile is a new licensed Mobile Network Operator and Wireless Internet Service Provider based in Willemstad, Curaçao. The company offers to its customers symmetric and asymmetric internet access up to 250Mbs; Metro-E services via PTP or PMP; long term evolution (4GLTE & 5G) Mobile and Fixed wireless data, and private label secure mobile data for first responders and emergency medical services.
PYGG is a boutique investment firm that helps individuals and companies reach their financial goals by offering specialized and personalized wealth management, investment banking, and corporate services.