REG - Cordiant Digital Inf - Emitel signs long-term mobile tower contract

Cordiant Digital InfrastructureAnnouncement

03/04/2025 07:00

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RNS Number : 4355D  Cordiant Digital Infrastructure Ltd  03 April 2025

LEI: 213800T8RBBWZQ7FTF84

3 April 2025

 

CORDIANT DIGITAL INFRASTRUCTURE LIMITED

 

EMITEL SIGNS NEW LONG-TERM MOBILE TOWER CONTRACT

 

Cordiant Digital Infrastructure Limited (the "Company"), the operationally
focused, specialist digital infrastructure investor, managed by Cordiant
Capital Inc, is pleased to announce that its Polish portfolio company, Emitel,
has signed a long-term agreement with Orange Polska S.A. ("Orange"), a leading
mobile network operator ("MNO") in Poland, to expand mobile network coverage
in the country.

 

Under a built-to-suit ("BTS") model, Emitel is to construct hundreds of new
telecommunications towers for Orange over the next few years. Orange, as the
anchor tenant, will commit to pay a recurring fee under a long-term contract
for each site built based on industry-standard terms. This project marks
another step in the strategic partnership between Emitel and Orange in
developing modern telecommunications infrastructure in Poland. In addition,
Emitel can sell the remaining space on each tower to other MNOs to increase
the profitability of each site. The capital expenditure for this project is
expected to be funded by Emitel's free cash flow.

 

As of 31 December 2024, Emitel operated 762 communications towers, with all
four of Poland's major MNOs as tenants, with a blended tenancy ratio of 1.4x
across towers constructed under the BTS model (circa 300 sites) 1 , which
typically have contract terms of at least 15 years with escalation clauses.
Since the Company's acquisition of Emitel in 2022, Emitel has expanded its
tower portfolio by 27% and increased associated revenue by 37%. In the nine
months to 30 September 2024, Emitel recorded 12.1% year-on-year revenue growth
for telecommunications site hosting. This new project with Orange, together
with other investments, is expected to enable Emitel to expand its nationwide
tower portfolio to well over 1,000 sites and continue its high rate of growth
in this segment.

 

The growth in demand for modern digital infrastructure in Poland, the sixth
largest EU economy, is being fuelled by rapid economic growth driven by strong
household consumption, increased government spending, and a positive
contribution from EU funds. In 2024, Poland was a standout performer in Europe
recording GDP growth of 2.9%, well above the EU average of 0.9% 2 . Economists
expect growth in 2025 to be even higher and the IMF is forecasting that in
2026, income per capita will be higher in Poland than in Japan.

 

Maciej Pilipczuk, CEO of Emitel, said: "We are pleased that Orange Polska has
once again entrusted us to implement a significant infrastructure project. As
an experienced technology partner, we guarantee the highest execution
standards and efficiency in delivering even the most demanding investments for
them. Our many years of experience in building and managing telecommunication
infrastructure enable us to support the expansion of the mobile network in
Poland, meeting the growing needs of operators and users."

 

Steven Marshall, co-founder of Cordiant Digital Infrastructure, said "We are
delighted with this contract win by Emitel with a blue-chip customer. As a
result, the company will play a key part in expanding Poland's 5G
telecommunications network and expects to earn incremental revenues for the
duration of the project. Wins such as this validate our Buy, Build & Grow
model and create real value for our shareholders."

 

For further information, please visit www.cordiantdigitaltrust.com
(http://www.cordiantdigitaltrust.com/) or contact:

 

 Cordiant Capital, Inc.                               +44 (0) 20 7201 7546

 Investment Manager

 Stephen Foss, Managing Director

 Aztec Financial Services (Guernsey) Limited          +44 (0) 1481 74 9700

 Company Secretary and Administrator

 Chris Copperwaite / Laura Dunning

 Investec Bank plc                                    +44 (0) 20 7597 4000

 Joint Corporate Broker

 Tom Skinner (Corporate Broking)

 Lucy Lewis (Corporate Finance)

 Deutsche Numis                                       +44 (0) 20 7260 1000

 Joint Corporate Broker

 Hugh Jonathan (Corporate Finance)

 George Shiel (Corporate Finance)

 Celicourt                                            +44 (0)20 770 6424

 Public Relations Advisor

 Philip Dennis/Ali AlQahtani/Charles Denley-Myerson

 

 

Notes to Editors:

 

About the Company

 

Cordiant Digital Infrastructure Limited primarily invests in the core
infrastructure of the digital economy: data centres; fibre-optic networks;
telecommunications and broadcast towers - in Europe and North America. Further
details about the Company can be found on its website at
www.cordiantdigitaltrust.com.

 

The Company is a sector-focused specialist owner and operator of digital
infrastructure, listed on the London Stock Exchange under the ticker CORD. In
total, the Company has successfully raised £795 million in equity, along with
a €375 million debt package comprising a €200 million Eurobond and €175
million of committed capex and revolving facilities, deploying capital into
six acquisitions: CRA, Hudson Interxchange, Emitel, Speed Fibre, Belgian Tower
Company and Datacenter United, which together offer stable, often index-linked
income, and the opportunity for growth, in line with the Company's Buy, Build
& Grow model.

 

About the Investment Manager

 

Cordiant Capital Inc is a specialist global infrastructure and real assets
manager with a sector-led approach to providing growth capital solutions to
promising mid-sized companies in Europe, North America and selected global
markets. Since the firm's relaunch in 2016, Cordiant, a partner-owned and
partner-run firm, has developed a track record of exceeding mandated
investment targets for its clients.

 

Cordiant focuses on the next generation of infrastructure and real assets:
sectors (digital infrastructure, energy transition infrastructure and the
agriculture value chain) characterised by growth tailwinds and technological
dynamism. It also applies a strong sustainability and ESG overlay to its
investment activities.

 

With a mix of managed funds offering both value-add and core strategies in
equity and direct lending, Cordiant's sector investment teams (combining
experienced industry executives with traditional private capital investors)
work with investee companies to develop innovative, tailored financing
solutions backed by a comprehensive understanding of the sector and
demonstrated operating capabilities. In this way, Cordiant aims to provide
value to investors seeking to complement existing infrastructure equity and
infrastructure debt allocations.

 

About Emitel

 

Emitel is a leading integrator of terrestrial telecommunications
infrastructure in Poland and a provider of innovative smart city &
internet of things (IoT) solutions. Through Emitel, TV and radio signals can
be received in all Polish homes. The company designs state-of-the-art wireless
communication systems, offers high-altitude infrastructure sites for mobile
operators and is involved in the creation and testing of networks to enable
commercial autonomous drone missions. Emitel supports partners in sustainable
development focused on the comfort of local communities, environmental goals
and social engagement.

 1  Emitel had a blended tenancy ratio of 2.4x at the end of 2024 for its
legacy towers.

 2  According to Eurostat.

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