LIQUID Telecoms is set to launch a $700 million bond and long-term financing package to support the group’s existing debt and growth strategy.
The Pan-African telecommunications group said the funding would be raised through its subsidiary, Liquid Telecommunications Financing Plc.
“Liquid Telecom, has today announced its intention to launch a $700 million bond and long-term loan financing package to refinance the group’s existing debt and to support its growth strategy,” it said.
It is hoped that the funds from the new financing would support Liquid Telecom as it continues to rapidly scale and expand its network capabilities and service offering across Africa. “Through a combination of organic growth and acquisition, Liquid Telecom has built Africa’s largest independent fibre network, stretching over 50 000 kilometres and connecting more countries on a single network than any other,” it said.
The new financing package is also expected to help deliver long-term benefits to Liquid Telecom’s growing number of enterprise, carrier and retail customers, which at present includes over 113 000 customers across 13 countries of operation including Zimbabwe.
Liquid Telecom serves businesses of all sizes through an extended service offering, which includes integrated software, cloud, hosting and connectivity capabilities.
“Today is another important step for Liquid Telecom as we continue our journey to bring high-speed connectivity to more of Africa. “Through additional funding, we hope to be able to continue this period of accelerated growth for the group, enabling us to extend our network footprint across more of the continent,” said Liquid Telecom group chief executive officer, Mr Nic Rudnick.
Towards the end of last year, the telecommunications group announced that it had received unconditional approval from the Independent Communications Authority of South Africa (ICASA) to acquire Neotel to the tune of $435 million.
Neotel is South Africa’s first converged communications network operator while Liquid Telecom is majority owned by Econet Global, the parent company of Econet Wireless Zimbabwe. Liquid Telecom said its partner, a South African investment group Royal Bafokeng Holdings (RBH) would own a 30 percent stake in Neotel.
The combined network assets and service platforms was targeted at giving Liquid Telecom unparalleled reach across Eastern, Central and Southern Africa, enabling it to offer access via a single connection to over 40 000 kilometres across border, national and metro fibre networks across 12 countries.
Liquid Telecom was investing in Neotel’s products and services in order to support the rising demand for network services in South Africa and other African countries.