African cellular tower specialist Eaton Towers has secured US$60m in debt financing from Standard Bank’s Stanbic Uganda unit and the International Finance Corp (IFC) to build and develop new and existing telecommunications towers in Uganda.
The financing includes a $30m tranche, with an 8,5-year maturity, from IFC, which is part of the World Bank Group. The other $30m is being provided by Stanbic Uganda on six-year term.
The deal marks Eaton’s second round of bank debt funding this year. Earlier in 2012, it secured a $30m debt facility through Stanbic Bank Ghana and Standard Bank in SA. In 2011, Eaton received a $150m equity investment from Capital International Private Equity Funds, a private-equity investor that focuses on emerging markets.
The capital raised in the latest deal will be used to fund Eaton’s acquisition of nearly 400 towers from Warid Telecoms in Uganda as well as to upgrade towers and build 80 new base stations.
Eaton Towers also acquired 300 towers from Orange Uganda in January, giving it a total of about 700 towers and national coverage in Uganda. — (c) 2012 NewsCentral Media