Investec has provided ICT and infrastructure provider, Vox, with access to debt facilities to fund their fibre rollout plans.
“The roll-out of fibre via our subsidiary Frogfoot, is key to helping revolutionise the lives of local families and businesses, by providing a fast, affordable and reliable platform for communication,” says Jacques du Toit, CEO at Vox.
“However, the fibre telecommunications game is a competitive one and the right funding partner for growth is paramount. In fact, as work from home becomes the norm, so has the need for fast, affordable, and reliable internet connectivity. This additional CAPEX allows us to continue to provide communities with fast and reliable fibre to both homes and businesses as demand continues to grow.”
Frogfoot has doubled the size of its network, expanding its footprint to smaller towns across South Africa – enabled by a focus on the provisioning of high-speed national long-distance services.
“We are now at the point where fast-growing companies such as Vox and Frogfoot are expanding beyond these areas, into new outlying regions where both homes and businesses still need fibre,” says Laverne Chetty, Specialised Finance Consultant at Investec.
“With the additional funding we have provided, Vox has the capability to implement the next stage of its growth strategy which includes taking fibre to those areas eager to benefit from high-speed internet access.”
Chetty adds that Investec was the mandated lead arranger on the Vox deal who structured the debt package, managed the entire process and brought in Rand Merchant Bank and Standard Bank as fellow lenders.
Demand for fibre is expected to continue to increase as pandemic-driven changes like work from home gain even more traction. In the end, the rollout of fibre should not only boost the home market, but also increase business productivity and efficiency, while delivering a connectivity foundation ideal for start-ups and new businesses.
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