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Liquid Telecom secures $700m for group's growth

by Staff reporter
13 Jul 2017 at 07:11hrs | Views
PAN African telecommunications group, Liquid Telecom has secured a $700 million bond and term loan facility aimed at supporting the group's existing debt and growth strategy.

The financing package was raised through the group's subsidiary, Liquid Telecommunications Financing Plc.

"Liquid Telecommunications Financing Plc, part of the leading pan-African telecoms group Liquid Telecom, which is majority owned by Mr Strive Masiyiwa's Econet Global, has successfully arranged its $700 million bond and term loan financing package," said the group in a statement.

It is hoped that the funding will enable Liquid Telecom to further expand and enhance its Pan-African fibre network – the largest of its kind in the region – and support its vision for a more connected Africa.

"The group raised $550 million in the international debt capital markets in its debut bond, in addition to a $150 million term loan.

"The successful pricing of the bond, which launched on June 21, is a significant milestone for both the group and the wider African telecoms sector, which remains one of the least penetrated fixed and mobile internet connectivity markets in the world," said the group.

Through organic growth and acquisition, Liquid Telecom has built over 50 000 kilometres of fibre connecting nine countries in the region including Zimbabwe, and presently serves over 113 000 enterprise, carrier and retail customers.

The group's chief executive officer, Mr Nick Rudnick, said: "We are pleased with the strong support and interest Liquid Telecom has received internationally.

"We launched into a challenging market, and have attracted investors of high quality – many of whom are investing in African high yield bonds for the first time. This is a significant achievement for an African tech company."

Liquid Telecom serves businesses of all sizes through an extended service offering that includes integrated software, cloud, hosting and connectivity capabilities.

Towards the end of last year, the telecommunications giant announced that it had received unconditional approval from the Independent Communications Authority of South Africa (ICASA) to acquire Neotel to the tune of $435 million.

Neotel is South Africa's first converged communications network operator while Liquid Telecom is majority owned by Econet Global, the holding company of Econet Zimbabwe.

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Source - chronicle
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