The IFC has offered USD 200 million in financing to IHS Nigeria. According to the IFC, the financing has been arranged in order to assist IHS Nigeria expand its tower portfolio as well as create mobile infrastructure, which will improve service quality for operators and consumers in Nigeria.
According to the IFC, the financing is part of a USD 600 million debt package raised by IHS from international and local lenders. The transaction mobilises significant resources from other investors.It includes $50 million for IFC’s own account, $112.5 million from ICBC, the Industrial and Commercial Bank of China, and $37.5 million through the IFC Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio. ICBC is China’s and the world’s largest bank by assets.
Issam Darwish, CEO and Executive Vice Chairman of IHS Holding Limited, stated that: “The IHS mission is to provide telecommunications infrastructure to mobile network operators in Africa that enables the widest, most efficient and reliable networks, supporting the economic development of the region. We are constantly developing new, efficient and effective technologies and rolling out passive network to make that happen. Partnering with IFC has helped us access funding from a broader range of sources that will help us pursue our goal of building the infrastructure needed for Nigeria’s long-term growth.”
IHS will use the funds to acquire approximately 2,200 tower sites from Etisalat Nigeria and to construct additional Build-to-Suit towers. The expansion will improve network congestion, reduce operating costs, and increase service coverage for the mobile operators.
Eme Essien-Lore, IFC Nigeria Country Manager said, “IFC’s telecom sector strategy supports increased coverage and access to services across Nigeria. The IHS Nigeria expansion project will contribute to inclusive growth and job creation that promotes growth in Nigeria. With support from ICBC and other lenders, IHS is expanding its lender base for network development and increasing financing between Africa and China. ”
Darryl Linington
