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IHS to raise $2.6 billion capital

IHS to raise $2.6 billion capital

IHS Holding Limited has signed agreement to raise $2.6 billion in fresh capital to grow the independent mobile telecoms infrastructure provider.

The fresh capital injection comprises equity of $2 billion and a loan facility of $600 million, the company announced.

This represents the largest equity raise in Africa since 2007 and serves to underline the position of IHS as the largest tower company in EMEA.

The company has now raised a total of $4.5 billion since 2012 and deployed the funds in establishing market-leading positions across Africa in Nigeria, Cameroon, the Ivory Coast, Zambia and Rwanda.

According to the telecoms infrastructure provider, the new funding will be applied to acquisitions and also further new site build programmes across the IHS footprint. It will also be utilised to continue the roll out of efficient power technologies and operational management solutions including solar systems and high efficiency generator units.

Issam Darwish, Executive Vice Chairman/CEO of HIS says” we are delighted to announce this successful capital raise and that we continue to create enormous value for our stakeholders. The contribution of our investors significantly strengthens our position and the ability to move into the next phase of growth and development with confidence. We are clear in our ambition to play a leading role in the creation of the widest, most efficient and reliable mobile networks in Africa. The social and economic benefits to the local economies where we operate are significant.”

This latest equity investment of $2 billion has been secured from existing and new shareholders.

The debt component of $600 million is split between USD and Naira and has a 7-year tranche and 8-year tranche. The facility was fully under-written, according to the company.

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Kayode Oladeinde Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929