Fast-growing African tower operator IHS Holding announced on Monday that it has signed agreements to raise capital of US$2,6bn, or more than R28bn. It said the amount is the largest equity raising in Africa since 2007.
The company is raising $2bn in new equity and a further $600m through a loan facility. It said the deal serves to “underline the position of IHS as the largest tower company in Europe, the Middle East and Africa”.
The latest equity investment has been secured from existing and new shareholders. The debt component is split between US dollars and Nigerian naira and has a seven-year tranche and an 8-year tranche. The facility was fully underwritten.
IHS has raised $4,5bn since 2012, using the money for expansion in markets across Africa, including 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’s tower portfolio in the last 12 months and also further new site build programmes across the IHS footprint,” the company said in a statement.
“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.” — (c) 2014 NewsCentral Media