Afreximbank has closed a US$150mn financing facility in favour of Mauritian telecommunications company Econet Wireless, to fund the firm’s expansion programme.
Afreximbank is global co-ordinator and mandated lead arranger for the syndicated facility that also sees the participation of two other African banks: the South African Trade and Development Bank and Stanbic Zimbabwe.
KfW Bank’s subsidiary Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) is acting as co-arranger, mobilising a European development financing pool comprising DEG, the Netherlands Development Finance company (FMO) and Societe De Promotion Et De Participation Pour La Cooperation Economique (Proparco), a subsidiary of the French Development Agency. PTA Bank completes the syndicate of lenders.
As part of a multi-creditor security sharing arrangement, Afreximbank will hold security for Econet’s various creditors, including the China Development Bank, Ericsson and the Development Corporation of South Africa.
“Econet Group are making great strides in connecting Africa through their innovative telecommunications solutions and, in turn, enhancing intra-African trade,” says Afreximbank president, Jean Louis Ekra.
“The closing of this facility is a demonstration of Afreximbank’s commitment to partnering with African and international financial institutions to support the growth of African multinationals.”
The proceeds of the facility will used by Econet to expand new areas of business, including mobile banking and solar energy, as well as refinancing debt related to existing telecommunications network infrastructure.
Commenting on the financing, Econet CEO, Craig Fitzgerald, says: “Afreximbank is again enabling the expansion of African companies by leading this syndication, which will provide Econet the ability to expand its product range and footprint across the Africa.”