The International Finance Corporation (IFC) has invested into a Liquid Telecommunications subsidiary’s bond issue.
IFC, playing an anchor role, subscribed to 16% of the bond, equivalent to $100-million, which was listed on Ireland's main stock exchange, Euronext Dublin on February 25. The issuance raised $620-million.
Proceeds from the bond issued by Liquid Telecommunications Financing 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.
This will enable the telecoms and technology solutions company to expand access to broadband Internet and digital and cloud services across Africa.
“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,” said Liquid Telecom Group CEO Nic Rudnick.
“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,” he added.
IFC COO, interim MD and executive VP Stephanie von Friedeburg said that investment into digital infrastructure was the “best chance” to ensure much-needed Internet access for everyone in Africa, from large corporates and small businesses to individuals,.
“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.”