The deployment of fibre infrastructure by Vox subsidiary Frogfoot has been boosted by access to debt facilities to fund their fibre ambitions.
The addition capital expenditure (capex) boost from mandated lead arranger Investec will enable Vox to continue to provide communities with fast and reliable fibre to both homes and businesses as demand continues to grow.
“Investec was the mandated lead arranger on the Vox deal who structured the debt package, managed the entire process and brought in Rand Merchant Bank and Standard Bank as fellow lenders,” said Investec specialised finance consultant Laverne Chetty.
The company was able to create a flexible finance structure that, together with Vox’s investors Metier Private Equity and RMB Ventures, will help to unlock Vox’s potential.
Vox CEO Jacques du Toit said that Frogfoot has doubled the size of its network, significantly expanding its footprint to smaller towns across the country. The group also works with local Internet service providers (ISPs) in towns to enable users to get access to high-speed connectivity, with nearly 4 000 installations recorded a month despite challenging pandemic conditions.
“However, the fibre telecommunications game is a competitive one and the right funding partner for growth is paramount. In fact, as work from home becomes the norm, so has the need for fast, affordable and reliable Internet connectivity,” he added.
“Fibre-to-the-home (FTTH) is now at a crucial point in its growth cycle in South Africa, where investment in infrastructure is needed to meet the rising demand for high-speed, reliable broadband. It is important, therefore, for equity and debt funders to work together to provide the right capital mix to fund this growth,” said Vox chairperson and Metier founder and CEO Paul Botha.
Chetty commented that fast-growing companies such as Vox and Frogfoot are expanding beyond the more populous metropolitan areas into new outlying regions where both homes and businesses still need fibre.
“With the additional funding we have provided, Vox has the capability to implement the next stage of its growth strategy which includes taking fibre to those areas eager to benefit from high-speed Internet access.”
“We are pleased to have been able to provide Vox with this kind of specialised growth funding, to support what is a critical market from both a social and economic standpoint,” Chetty concluded.