Investor targets US$50mln of Liquid Telecoms bond issue

A PRIVATE infrastructure development group, Emerging Africa Infrastructure Fund (EAIF), says it will buy up to US$50 million of Liquid Telecommunications’ US$600 million bond issue.

Liquid Telecom, is a Pan-African firm that has a footprint across 13 countries primarily in eastern and southern Africa, including Zimbabwe, where it serves mobile operators, carriers, enterprise, media and content companies with high-speed connectivity. Of late, the firm has built Africa’s largest independent fibre network of over 73 000 kilometres.

EAIF has said that its support for the Liquid Telecommunications bond issue was its fourth large-scale transaction in Africa’s digital and telecommunications sector in the past 12 months. It noted that a wholly-owned subsidiary of Liquid Telecom Holdings Limited, Liquid Telecommunications Financing plc, was the issuer of the bond, which was launched Monday.

“The bond (new note offering) aims to raise US$600 million to be used to refinance existing debt and for corporate purposes.

“EAIF, acting through its agent Ninety-One SA (Pty) Ltd, along with The International Finance Corporation (IFC) and DEG-Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), have committed to place orders to purchase up to an aggregate US$178 million in the new note offering,” it said.

“Growing Africa’s digital infrastructure is a key foundation stone in recovering the continent from the global economic devastation of Covid-19. EAIF has supported the growth of Africa’s digital and telecommunications sector since 2003.

“We have given support to projects including marine and terrestrial fibre optics, communications towers and satellites that have brought advanced communications to Africa and had significant economic development impact on many countries. Liquid Telecommunications is a dynamic and successful business we are pleased to support.”

Experts say growing Africa’s digital infrastructure is a key foundation stone in recovering the continent from the global economic devastation of Covid-19.

ebusinessweekly.co.zw