Mezzanine fund manager Vantage Capital has disbursed the second and final tranche of a R250-million (US$16.6 million) expansion capital facility to South African FTTH (Fibre to the Home) network operator Vumatel.

In a statement released to the media Vumatel is said to have rapidly expanded its network and "exceeded operational and financial milestones" required to drawdown two equal tranches of R125-million (US%8.3 million) making up the R250 million facility.

Established in 2014 to supply affordable high-speed fibre optic network connectivity in South Africa, Vumatel's network is said to cover 22 suburbs.

The company's value proposition is the deployment of an open access fibre optic network, which means that its network can be used as a platform by multiple internet service providers.

Luc Albinski, Managing Partner at Vantage Capital, said "the provision of high-speed, quality broadband has been shown to have positive social and economic benefits for a country. Vantage is proud to support Vumatel to expand their network and to facilitate the provision of high quality broadband to more South Africans."

Yaw Keteku, Associate Partner at Vantage Capital, added "Vumatel is laying the foundation for South Africans to participate in a world that is increasingly data-driven, and we are delighted to be partnering with an excellent management team as they make this goal a reality."

Niel Schoeman, CEO and co-founder of Vumatel said "we required a forward-thinking financial partner, able to understand the industry opportunity and to structure an optimal funding solution for our stage of growth. We are pleased to partner with Vantage in what we consider to be one of the most exciting growth opportunities in the South African telecommunications industry."

This is Vantage's 22nd mezzanine investment and the 4th investment in Fund III, which is targeting a final close of R4 billion ($270 million) and has a 40% allocation for South Africa, the companies have stated.

Vantage Mezzanine Fund III supported the Servest buyout last year, and recently concluded a $20 million investment in Landmark (a Nigerian property group), as well as an N$80 million (R80 million) investment in UAG (a Namibian Hospitality and Property Group).