South Africa-based telecoms group Econet Wireless has signed a US$150m debt financing to fund its expansion programme in several areas, including mobile banking and solar energy businesses.
Some of the funding will also go towards refinancing existing…
South Africa-based telecoms group Econet Wireless has signed a US$150m debt financing to fund its expansion programme in several areas, including mobile banking and solar energy businesses.
Some of the funding will also go towards refinancing existing debt related to its telecoms network infrastructure.
Afreximbank, also known as the African Export-Import Bank, acted as mandated lead arranger on the syndicated facility.
It was joined by DEG, acting as co-arranger, and PTA Bank, FMO, Proparco and Stanbic Bank Zimbabwe, which were lenders. Afreximbank and DEG also acted as lenders.
The new syndication forms part of a multi-creditor security sharing arrangement coordinated by Afreximbank that closed in May 2012, according to a statement from the export-import institution.
“Under the arrangement, Afreximbank, as global security agent, holds security for Econet’s various creditors, including the China Development Bank Corporation, Ericsson Credit AB and Industrial Development Corporation of South Africa,” it said.
In May 2012, Econet borrowed US$362m for its Zimbabwean mobile unit from a consortium of financial institutions led by Afreximbank.
The telecoms group says it has operations in Africa, Europe, South America and East Asia Pacific Rim where it provides a variety of telecoms services.
It is still embroiled in a legal dispute with India’s Bharti Airtel over the ownership of mobile operator Airtel Nigeria.