Digicel, the mobile phone business based in the Caribbean and controlled by Denis O'Brien, has completed a $408 million (€308 million) fundraising, the largest in its history.

The company said the funding would fuel a new aggressive growth strategy.

The funding deal was led by Citigroup, one of the world's largest banks.

"The funding provides for capital enlargement for Digicel and for the rapid acceleration of the company's aggressive expansion strategy in the Caribbean," said a statement.

Digicel operates in seven countries, including Aruba, Barbados, the Cayman Islands, Grenada, Jamaica, St Lucia, St Vincent and the Grenadines. It is estimated to be the largest GSM mobile operator in the region with an average market share of 60 per cent.

The company plans to move into other Caribbean countries and is currently one of five operators fighting for a new licence in Trinidad and Tobago.

Of the $408 million, about $120 million consists of new debt capital to fund growth and acquisitions. The rest of it will be used to deepen the company's capital base, restructure existing debt and a portion will be used to buy out minority shareholders in the company.

Among the shareholders to be bought out are International Finance Corporation.

Mr O'Brien, the company's chairman, who is believed to own at least 75 per cent of the equity, described the fundraising as "a most significant milestone".

"We are now strategically positioned to move to the next phase of our expansion," he said. He added that major banks across the globe had shown an interest in the fundraising round. He said they realised Digicel was increasing its presence in several rapidly developing markets.

Two Irish banks - AIB and Bank of Ireland - are among the syndicate lending the finance.

Other banks include Nordea Bank AB, EDC (Export Development Canada), Deutsche Bank, Bank of NT Butterfield & Son Limited, Trinidad and Tobago Unit Trust Corporation, The Bank of Nova Scotia Limited, National Commercial Bank and FMO Financierings-Maatschappij voor Ontwikkelingslanden.

Digicel, which has a current workforce of over 1,000, has enjoyed rapid growth by aggressively winning significant market share.

The company's customer base grew 33 percent in 2004.

"This transaction provides Digicel with a financial profile that allows it to invest further in its existing operations as well as execute on further expansion plans throughout the region. The transaction was very well received by both international and regional investors in recognition of Digicel's impressive performance to date in the Caribbean region," said Julie Siskind, Citigroup's senior transactor for the financing.

Digicel was also advised by Connolly Corporate Finance and Island Capital.

The company is incorporated in Bermuda and operates in seven Caribbean countries. The company is now a well recognised brand in the region. Its links with various sporting bodies and teams has helped this process. The company is the lead sponsor of Caribbean sports teams including the West Indies Cricket Team and various Special Olympics teams across the Caribbean region.

It is also the lead sponsor of the Caribbean Football Union Cup.