EAIF and IFC-backed Sonatel bond lists on West African regional stock exchange
The transaction marks a significant milestone for Sonatel, the largest telecommunications carrier in Senegal.
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The Fonds Commun de Titrisation de Créances (FCTC) Sonatel bond – backed by the Emerging Africa Infrastructure Fund (EAIF) and the International Finance Corporation (IFC) as anchor investors – has listed on the Bourse Régionale des Valeurs Mobilières (BRVM), the West African Economic and Monetary Union’s (WAEMU) regional stock exchange.
The transaction marks a significant milestone for Sonatel, the largest telecommunications carrier in Senegal. Sonatel will use the proceeds to support the acquisition of a 5G licence, extend its mobile and internet network infrastructure, and upgrade mobile money and data services in Senegal.
The XOF 75 billion (c. $123.8 million), receivables-backed, AAA local-rated bond was issued in January 2024, with a XOF 23.5 billion (c.$39 million) commitment from the EAIF and a XOF 25 billion (c.$41 million) commitment from the IFC, with the remaining amount successfully placed with local and regional investors.
EAIF’s investment in the FCTC Sonatel 2023-2038 asset backed security follows a XOF 15 billion (c.$27 million) commitment to the telecommunications firm in 2020. EAIF acted as an anchor investor for its XOF 100 billion (c.$180 million) inaugural corporate bond that was used to upgrade 4G+ networks in urban and rural areas in Senegal.
SGI Invictus Capital and KF Titrisation acted as arrangers in the transaction.
Folatomi Fayemi, investment specialist at Ninety One, the fund manager of the EAIF, said: “Listing the bond on the regional exchange will help Sonatel raise capital from a diverse pool of investors, supporting the company’s ambitions to improve access to digital services in the West African region. Our latest investment in Sonatel demonstrates our firm commitment to supporting businesses that transform markets through investments in critical infrastructure, driving economic growth through the creation of digital jobs and online businesses.”
Olivier Buyoya, IFC regional director for West Africa, said: “We take great pride in witnessing the listing of the bond on the regional exchange, following our support for the first-ever securitisation in the telecoms sector in West Africa. This listing not only reflects our commitment to the development and deepening of the regional capital market but also underscores our dedication to supporting regional economic development and promoting investment opportunities.”
Bineta Dior Beye, CFO of Sonatel, said: “We are confident that this transaction will strengthen our leading position in the telecommunications market and enable us to continue to provide superior services to our customers.”
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