The Emerging Africa Infrastructure Fund (EAIF), a PIDG company, will acquire up to Ksh. 5.4 billion (USD 50 million) of a bond issue by Liquid Telecommunications. The bond, dubbed The New Note Offering aims to raise Ksh. 65.9 billion (USD 600 million), which will be used to refinance existing debt for corporate purposes. The issuer will be Liquid Telecommunications Financing, a wholly-owned subsidiary of Liquid Telecommunications Holdings.
EAIF, acting through its agent, Ninety One SA, along with The International Finance Corporation (IFC) and DEG-Deutsche (DEG), will purchase up to an aggregate Ksh. 19.5 billion (USD 178 million) in the New Note Offering.
Liquid Telecommunications has built a large independent fibre network of over 73,000km in Africa. The company serves telco and digital industry customers and commercial, public sector and domestic users with a broad range of connectivity. The company also serves hosting and cloud based products, including Microsoft 365 and Microsoft Azure.
Sumit Kanodia, an Investment Director at EAIF’s manager, Ninety One, said, “Growing Africa’s digital infrastructure is a key foundation stone in recovering the continent from the global economic devastation of COVID-19. EAIF has supported the growth of Africa’s digital and telecommunications sector since 2003. Liquid Telecommunications is a dynamic and successful business we are pleased to support.”
EAIF’s support for the Liquid Telecommunications bond issue is its fourth transaction in Africa’s digital and telecommunications sector in the past one year. In 2020, EAIF supported bond issues by Helios Towers and Sonatel, the Senegal-based regional digital and telecommunications business. The bond issues mobilized millions of dollars in private capital invested in high-technology African business. EAIF also loaned Ksh. 4.4 billion (USD 40 million) to the West Indian Ocean Cable Co (WIOCC), as part of WIOCC’s corporate development program.