African telco Smile Telecoms Holdings has raised US$365m in debt and equity financing to expand its 4G mobile broadband networks and services.
African telco Smile Telecoms Holdings has raised US$365m in debt and equity financing to expand its 4G mobile broadband networks and services.
Smile aims to have national 4G coverage in the three markets it operates in – Nigeria, Tanzania and Uganda – by the end of 2015 and to launch its broadband network in Democratic Republic of Congo (DRC) in early 2016.
The funding consists of US$50m of equity, raised from the Public Investment Corporation on behalf of Government Employees Pension Fund (PIC) and a US$315m multi-tranche, multijurisdictional debt facility. The latter was led by African Export-Import Bank and also involved the Development Bank of Southern Africa, Diamond Bank, Ecobank Nigeria, the PIC, the Industrial Development Corporation of South Africa and Standard Chartered Bank.
The Mauritius-incorporated telco’s financial adviser for the funding was Darisami International Consultancy.
Funds will be used to buy equipment and services from Alcatel-Lucent and Ericsson, a full Multiprotocol Label Switching (MPLS) network, a London Point of Presence and expanded international backhaul services, as well as for operational expenditure and working capital.
Smile said the funding is one of the largest capital raises ever for a telco in Africa and brings the total funding committed to the company since its founding in 2007 to about US$600m.
Smile CEO Irene Charnley (pictured) said the company is now fully funded to deliver super-fast internet and clear voice services nationally in each of its markets.
The company’s deputy chairman Sheikh Mohammed Sharbatly added: “By licencing 800MHz spectrum for commercial use at an early stage relative to many other countries, including high-income ones, the governments of Nigeria, Tanzania, Uganda and the DRC have each demonstrated commitment to be at the forefront of the broadband revolution and to accelerate development and GDP growth …”