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Business Writer
PAN-African telecommunications group, Liquid Telecoms, says it has successfully arranged a bond and term loan refinancing facility to the tune of US$840 million for the group’s growth strategy and existing debt.
Liquid Telecom is a leading telecommunications firm in Africa in which Zimbabwean businessman, Strive Masiyiwa’s Econet Global, owns major shares, supported by its Joint Global Bookrunners.
Liquid Telecom announced the successful pricing of the bond that was launched a few weeks ago, attracting in excess of 230 investor orders including anchor orders from the International Finance Corporation and Emerging Africa Infrastructure Fund.
“The successful placing of US$840 million included US$620 million in the international bond markets as well as a US$220 million equivalent South African Rand term loan,” said Liquid in a latest statement.
“The order book, which totalled US$3,2 billion, was more than five times oversubscribed helping to drive a coupon rate of 5,5 percent compared to the group’s 8,5 percent debut bond coupon in July 2017,” said the firm.
The new financing package is expected to help deliver long-term benefits to Liquid Telecom’s growing number of enterprises, carrier and retail customers, which presently total over 143 000 customers across 13 countries of operation.
Liquid Telecom serves businesses of all sizes through a differentiated, comprehensive and expanding digital solutions service offering. The group’s chief financial officer, Ms Kate Hennessy, was quoted expressing pleasure over the overwhelming response his organisation received from investors despite the prevailing challenging environment.
“We are very pleased, considering the challenging times we are in, that investors in the international debt markets have supported us with such a successful refinance.
“The level of interest from high quality investors has been unprecedented for an African issuer and reflects the confidence that investors have in the future growth strategy for the Group as we address under developed telecommunications and internet access across Africa,” she said.
Liquid Telecommunications provides communication solutions across countries in Eastern and Southern Africa that serve mobile operators, carriers, enterprise, media and content companies and retail customers with high-speed, reliable connectivity, hosting and co-location and digital services.
Bongani Ndlovu