IHS, an African independent mobile telecommunications infrastructure provider, has inked agreements for a capital raise of US$2.6 billion comprising equity of US$2 billion and a loan facility of US$600 million.
According to the company, this represents the largest equity raise in Africa since 2007 and serves to underline the position of IHS as the largest tower company in EMEA.
IHS has now raised a total of $4.5 billion since 2012 and deployed the funds in establishing market-leading positions across Africa in Nigeria, Cameroon, the Ivory Coast, Zambia and Rwanda.
The new funding will be applied to acquisitions which have more than doubled the size of IHS’ tower portfolio in the last 12 months and also further new site build programmes across the IHS footprint. It will also be utilised to continue the roll out of leading, efficient power technologies and operational management solutions including solar systems and high efficiency generator units. These investments will deliver greener and more efficient power systems to our tower portfolio.
Issam Darwish, Executive Vice Chairman/CEO of IHS, said: ”We are delighted to announce this successful capital raise and that we continue to create enormous value for our stakeholders. The contribution of our investors significantly strengthens our position and the ability to move into the next phase of growth and development with confidence. We are clear in our ambition to play a leading role in the creation of the widest, most efficient and reliable mobile networks in Africa. The social and economic benefits to the local economies where we operate are significant.”
This latest equity investment of U$2 billion has been secured from existing and new shareholders, further signalling the continued confidence of the capital markets in our business model and management team.
The debt component of US$600 million is split between USD and Naira and has a 7-year tranche and 8-year tranche. The facility was fully under-written, confirming the status of IHS in the credit markets.
Staff Writer
