IFC invests in Liquid Telecom bond
IFC, a member of the World Bank Group, invested in Thursday’s bond issued by a subsidiary of Liquid Telecommunications Holdings Ltd., which will allow the telecoms and technology solutions company to expand access to broadband internet and digital and cloud services across Africa, further facilitating the growth of the continent’s digital economy.
Proceeds from the bond issued by Liquid Telecommunications Financing PLC, a wholly-owned subsidiary of Liquid Telecommunications Holdings Ltd, will enable the company to refinance existing debt and free up funds to expand its digital infrastructure network across Africa, including in markets with low broadband penetration.
By developing digital infrastructure, Liquid Telecommunications, Africa’s largest independent fibre, data centre and cloud technology provider, aims to increase digital connectivity and inclusion in Africa and support the region’s growing digital ecosystem.
IFC played an anchor role and subscribed to 16% of the bond, equivalent to $100 million, which was listed on Euronext Dublin, Ireland’s main stock exchange, on February 25, 2021. The issuance raised $620 million.
Internet access in Africa relies largely on mobile networks, many of which are enabled by wholesale connectivity providers such as Liquid Telecommunications. Broadband penetration is low across the continent, with a mobile broadband penetration rate of 34% and fixed broadband penetration of less than 5% in most countries across sub-Saharan Africa, excluding South Africa.
”We are delighted that IFC has taken a significant anchor position in our new bond. In the countries in which we operate there are great opportunities to address underdeveloped telecommunications and internet access, as well as to accelerate the adoption of digital and cloud-based services. Our refinance enables us to continue to invest in the African digital eco-system including driving penetration of digital and cloud-based services to businesses who may not previously have had the resources to benefit from them, helping to bridge the connectivity divide, which is more crucial than ever in our current circumstances,” said Nic Rudnick, Liquid Telecom group chief executive officer.
”Our best chance at ensuring much-needed internet access for everyone in Africa, from large corporates and small businesses to individuals, is to invest in digital infrastructure. Our investment in the Liquid Telecom bond will help the company free up capital to further expand broadband access across Africa, laying a solid foundation for a faster, more resilient recovery,” said Stephanie von Friedeburg, interim managing director and executive vice president, and chief operating officer of IFC.
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