South Africa-based Dark Fibre Africa (DFA) has signed R3.5bn (US$327m) worth of debt facilities, mainly to replace existing project finance funding.
The company plans to use the leftover money to invest in new infrastructure “in order to meet the…
South Africa-based Dark Fibre Africa (DFA) has signed R3.5bn (US$327m) worth of debt facilities, mainly to replace existing project finance funding.
The company plans to use the leftover money to invest in new infrastructure “in order to meet the growing demand for fibre infrastructure across South Africa”, according to a statement.
The facilities are split between R1bn in general banking and revolving credit facilities, while the rest is in three-, four-, five- and six-year term loans provided by a syndicate of banks.
The lenders are ABSA Bank, Development Bank of South Africa, Rand Merchant Bank, Futuregrowth Asset Management, Investec Asset Management, KZN Growth Fund, Liberty Group and Stanlib Asset Management.
“DFA, which was established in 2007, has grown considerably over the years and has now outgrown its project finance facilities,” CFO Thinus Mulder said. “The refinancing will enable DFA to achieve its main goals of diversifying our providers of debt funding, allow for greater financial flexibility and substantially reduce our financing costs.”
DFA owns carrier-neutral dark fibre infrastructure across South Africa. Its customers include telecoms operators, ISPs, media companies and government organisations.
