What’s this about?
- British International Investment (BII) commits $30 million as an anchor investor in Helios Towers’ $850 million public bond offering, listed on the London Stock Exchange, to refinance existing debt and enhance communications infrastructure in underserved areas.
- Helios Towers’ subsidiary, HTA Group, successfully prices the $850 million bond offering at 7.500% Senior Notes due 2029, with proceeds aimed at repaying existing facilities and extending average debt maturity.
- BII’s investment aims to mobilize international capital and support inclusive economic growth by improving information and communication services in regions with low mobile and 4G coverage across nine African countries.
Zoom in…
British International Investment, the UK’s development finance institution and impact investor, announced its participation in Helios Towers’ $850 million public bond offering, with a $30 million anchor commitment.
Helios Towers is a pan-African telecom infrastructure company with towers in over 14,000 locations, serving over 144 million people in Africa. Tanzania, Ghana, the Republic of Congo (Congo Brazzaville), South Africa, Senegal, Madagascar, and Malawi are among the nine countries where it operates.
Context
This funding comes after Helios Towers announced that its subsidiary, HTA Group, successfully priced a $850 million offering of 7.500% Senior Notes due 2029. The Notes will be issued for 99.488% of the principal amount, with interest payable semi-annually beginning on December 4, 2024.
The public bond offering, which will be listed on the London Stock Exchange (LSE), will allow the company to refinance its existing debt and improve access to information and communications services, emphasising areas with low mobile and 4G coverage.
What they are saying…
According to Manjit Dhillon, the telecom infrastructure company’s Chief Financial Officer, the bond offering was three times oversubscribed, and the refinancing will include repaying a portion of existing facilities and extending the average debt maturity by two years.
“This successful refinancing reflects the company’s track record and market diversification since our last bond offering, and expected cash flow generation through to 2026,” said Dhillon.
Chris Chijiutomi, Managing Director and Head of Africa at BII, said the firm is pleased to back Helios Towers’ public bond issuance as an anchor investor and to be able to mobilise international commercial capital.
Chijiutomi noted that the move will help direct funds to the regions that need them the most and improve information and communications services, leading to more inclusive economic growth.
While this is BII’s second LSE-listed public bond issuance, it recently signed a $30 million financing agreement with TowerCo of Africa Tanzania (TOA Tanzania), a telecommunications infrastructure provider to expand the latter’s operations. TOA Tanzania also aims to build about 200 new telecommunications sites using the funds.
Source: techpoint.africa.com
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