The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, has committed to buy up to $50 000 000 of a bond issue by Liquid Telecommunications, that was launched on 22 February 2020.
The bond aims to raise $600-million which will be used to refinance existing debt and for corporate purposes. The issuer will be Liquid Telecommunications Financing, a wholly-owned subsidiary of Liquid Telecommunications Holdings.
Sumit Kanodia, an investment director at EAIF’s manager, Ninety One, says: “Growing Africa’s digital infrastructure is a key foundation stone in recovering the continent from the global economic devastation of Covid. EAIF has supported the growth of Africa’s digital and telecommunications sector since 2003.
“We have given support to projects including marine and terrestrial fibre optics, communications towers and satellites that have brought advanced communications to Africa and had significant economic development impact on many countries. 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 large-scale transaction in Africa’s digital and telecommunications sector in the past 12 months. In 2020, EAIF supported bond issues by Helios Towers and Sonatel, the Senegal-based regional digital and telecommunications business. The bond issues mobilised $800-million in private capital invested in high-technology African business. EAIF also loaned $40-million to the West Indian Ocean Cable Co (WIOCC), as part of WIOCC’s corporate development programme.