Econet gets $150 million Afreximbank loan facility

Econet Wireless Global has secured a $150 million loan facility from African Export-Import Bank to expand its operations.

In a statement, Afrexim bank said Econet would use the funds to expand its mobile banking services and solar energy projects. The money will also go towards servicing a debt which the mobile giant assumed for network infrastructure projects.

The syndicated facility was arranged through a number of global financial institutions including the Southern African Trade and Development Bank and Stanbic Bank Zimbabwe.

"The closing of this facility represents a clear demonstration of Afreximbank's commitment to partnering with African and international financial institutions to support the growth of African multinationals," said Jean Louis Ekra, president of Afreximbank.

"Afreximbank is determined to continue working with leading African entities, like the Econet Group, which are making great strides in connecting Africa through their innovative telecommunications solutions and, in-turn, enhancing intra-African trade, which is a cornerstone of the Bank's mandate."

The syndication is part of a multi-creditor security sharing arrangement coordinated and arranged by Afreximbank.

Under the arrangement, Afreximbank, as global security agent, holds security for Econet's various creditors, including the China Development Bank Corporation, Ericsson Credit AB and Industrial Development Corporation of Southb Africa.

Econet Zimbabwe has said it will anchor its growth on non-voice related products and services with Ecocash leading that initiative.