German investment corporation Deutsche Investitions- und Entwicklungsgesellschaft (DEG) has supported the successful placement of a bond issued by the African fibre optic network operator Liquid Telecommunications on the international capital market.
DEG announced in March that it is investing $25-million in the bond, which has a total volume of $620-million.
By raising the funds, the company stabilises and improves its current financial structure.
In addition, the issuance improves liquidity for future investments.
The lack of information and communication technologies (ICTs) is still a bottleneck to development in Africa.
Liquid Telecommunications has built a 73 000 km multicountry fibre optic network in sub-Saharan Africa to provide access to ICT in order to foster business innovation and development.
It offers its network and services, such as Internet access, cloud-based solutions and cybersecurity, to businesses, small and medium enterprises and individuals.
Currently, about 150-million people are directly or indirectly connected to Liquid Telecommunication’s network.
With the help of the new funds, the company plans, for example, to build more than 5 000 km of fibre optic network in South Africa, Botswana and Democratic Republic of Congo.
By expanding, the company will be able to create around 150 new jobs in sub-Saharan Africa and more than 500 temporary jobs, in total.