Liquid Telecommunications Financing Plc, part of pan-African telecoms group Liquid Telecom, has successfully arranged its US$700 million bond and term loan financing package.
The group raised US$550 million in the international debt capital markets in its debut bond, in addition to a US$150 million term loan.
The company said the successful pricing of the bond is a significant milestone for both the group and the wider African telecoms sector, which remains one of the least penetrated fixed and mobile internet connectivity markets in the world.
The proceeds of the offering, together with the term loan financing package, will be used for the refinancing of Liquid Telecom's existing debt and general corporate purposes.
The funding will enable the company to further expand and enhance its pan-African fibre network – the largest of its kind in the region – and support its vision for a more connected Africa.
Liquid Telecom has built over 50,000 kilometres of fibre connecting nine countries in the region, and currently serves over 113,000 enterprise, carrier and retail customers.
"We are pleased with the strong support and interest Liquid Telecom has received internationally. We launched into a challenging market, and have attracted investors of high quality – many of whom are investing in African high yield bonds for the first time. This is a significant achievement for an African tech company," said Chief Executive Officer Nic Rudnick.
The loan will bear interest at a rate of 8.5% per annum and will be guaranteed by Liquid Telecommunications Holdings Limited and certain subsidiaries.
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