Nigerian phone tower company IHS Holding Limited has raised capital of up to 2.6 Billion Dollars that will be used to complete payments of current acquisitions and pay for new site build programmes across the IHS footprint.
IHS will also use the funding to continue roll out of leading, efficient power technologies and operational management solutions, including solar systems and high efficiency generator units.
The funding has been raised through agreements from shareholders who invested in equity of $2 billion and through a loan facility of $600 million, which has been split between US dollars and Naira denominations over 7 and 8 year terms.
“The contribution of owur investors strengthens our position and the ability to move into the next phase of growth and development with confidence,” said Issam Darwish, CEO of IHS.
“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.”
IHS which is headquartered in Nigeria, is an independent mobile telecommunications infrastructure provider with existing operations in Rwanda, Cameroon, Zambia and Ivory Coast, with plans to launch in more countries.
The company signed a deal with MTN in September this year that saw MTN sell over 9,000 towers in Nigeria to the tower company.
Etisalat Nigeria also signed a deal with IHS that would allow the company sell and lease back over 2,000 towers from the mobile operator.
The company aims to meet the growing demand of broadband in Africa by providing mobile towers to service the broadband penetration, which Darwish said could require up to 300,000 towers in the next 10 years.
IHS towers said this equity raise is the largest of its kind in Africa since 2007, underlining the position of IHS as the largest tower company in the region.