By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Africa’s leading mobile telecoms infrastructure providers, IHS Nigeria Plc said on Monday it has signed agreement for capital raise of $2.6 billion for its Africa expansion, the company disclosed in a statement.
According to the mobile telecoms infrastructure provider, the fund represents the largest equity raise in Africa since 2007 and serves to underline the position of IHS as the largest tower company in EMEA.
The company affirmed that the latest equity investment of $2 billion has been secured from existing and new shareholders, ‘’further signaling the continued confidence of the capital markets in our business model and management team,’’ Issam Darwish, chief executive officer of the company said.
While the $600 million debt is split between U.S. dollar and naira over a 7-year tranche and 8-year tranche.
‘’The facility was fully under-written, confirming the status of IHS in the credit markets,’’ the company said.
”We are delighted to announce this successful capital raise and that we continue to create enormous value for our stakeholders. The contribution of our investors significantly strengthens our position and the ability to move into the next phase of growth and development with confidence. We are clear in our ambition to play a leading role in the creation of the widest, most efficient and reliable mobile networks in Africa. The social and economic benefits to the local economies where we operate are significant,” Darwish affirmed.
The company said it has now raised a total of $4.5 billion since 2012 and deployed the funds in establishing market-leading positions across Africa in Nigeria, Cameroon, the Ivory Coast, Zambia and Rwanda.
IHS added that the new funding will be applied to acquisitions which have more than doubled the size of IHS’ tower portfolio in the last 12 months and also further new site build programmes across the IHS footprint.
The mobile telecoms infrastructure provider also said the fund will 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,’’ the CEO of IHS affirmed.
