Ninety One and EAIF in African ICT debt deal

The Emerging Africa Infrastructure Fund and its fund manager, Ninety One, have committed a $31m debt facility to Paratus Group.

For the best experience and to access our Connect industry chat platform, download the Africa Private Equity News app: Android | iOS

The Emerging Africa Infrastructure Fund (EAIF) and its fund manager, Ninety One, have committed a $31 million debt facility to Paratus Group to finance the expansion of its fibre and data centre business over the next three years.

Ninety One acted as the mandated lead arranger of the transaction, mobilising capital from two of its funds, EAIF and Ninety One Africa Credit Opportunities, to enhance last mile connectivity and introduce more reliable internet services across three sub-regions and six countries in Africa: Angola, Mozambique, Namibia, Republic of Congo, South Africa and Zambia.

The expansion of Paratus’s fibre business will include three new fibre routes connecting Walvis Bay-Johannesburg-Maputo; Brazzaville-Johannesburg-Maputo; and Luanda-Lusaka-Dar Es Salaam, adding to a fibre network of over 10,000km. The projects, linking the west and east African coasts, will enhance connectivity, data transmission and access to digital services.

EAIF’s investment will also help finance the construction of Angola’s first Tier IV data centre, Paratus’s fifth carrier neutral data centre in southern Africa, adding to its two other Tier III data centres in the Angolan capital, Luanda.

Commenting on the transaction, Sine Zulu, investment specialist at Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said, “This financing is a key demonstration of the growing demand for connectivity and data on the continent. EAIF’s structuring expertise and ability to mobilise private capital into digital infrastructure in emerging economies has enabled finance to flow where it is needed most. The collaboration of Ninety One’s Africa Credit Opportunities and EAIF is a progressive partnership designed to deliver high-impact infrastructure projects.”

Schalk Erasmus, chief executive officer at Paratus, noted, “Widening access to fibre and data centres in key African markets will progress development and inclusive growth – maximising opportunities in countries where entrepreneurial spirit abounds. EAIF and Ninety One’s commitment sends the right signal to the rest of the market and reinforces our mission to support a more connected and technologically advanced Africa.”

* Subscribe to Africa Private Equity News’ monthly Dealmaker’s Log for a database of the reported investment deals, exits and fundraising closes. Click here for more information.