IFC Leads $115 million Financing for Vodafone Ghana, Helping Expand Telecoms Services
IFC, a member of the World Bank Group, has mobilized a $115 million financing package for Vodafone Ghana from Chinese, German, and African institutions to help the company enhance its telecommunications network, and spread the benefits of mobile phone and broadband services in Ghana, especially in rural areas.
The debt package includes financing from a diverse group of commercial banks and development finance institutions, and is IFC’s first syndication with the Export-Import Bank of China and China Development Bank.
The deal includes $82 million in syndicated, parallel loans from the Export-Import Bank of China, China Development Bank and DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH) and $33 million in B loans from Barclays, Ecobank, Rand Merchant Bank and Standard Bank. IFC acted as the lead arranger and will serve as the administrative agent for the project.
In 2010, IFC provided Vodafone Ghana with a $1000 million loan from its own account consisting of a $75 million senior loan and $25 million subordinated loan.
Vodafone Ghana CEO, Kyle Whitehill, said, “IFC has introduced us to new partners and sources of financing that will help us continue to expand our service offerings in Ghana. We look forward to IFC’s continuing support as we work to further the development of Ghana’s telecommunications infrastructure”.
Vodafone’s focus on improving internet services for businesses in Ghana is an important tool in spurring innovation and increasing efficiency in Ghana’s private sector. The company is also continuing its commitment to improving mobile phone coverage in rural and remote areas.
Ritva Laukkanen, IFC Director of Syndicated Loans and Management, said, “The completion of IFC’s first syndication with Chinese financial institutions in Africa is an important milestone and we look forward to partnering on many more projects in the future. This mobilization demonstrates the growing appetite from commercial banks and development finance institutions to support companies, like Vodafone Ghana, that are building the infrastructure needed for long term economic growth in Africa.”
During the last 10 years, IFC has invested over $1.2 billion in 42 mobile phone projects spanning 15 countries in Africa. IFC’s current investment focus in Africa’s telecommunication sector is aimed at improving the availability and reliability of affordable communications services, supporting the adoption of new communication technologies and promoting technology enabled innovation and entrepreneurship.
This article was originally posted on Africa ICT & Telecom Network
Are you interested in Market Research, Recruitment and Business Leads?
Join the Africa Business Panel, powered by Africa Business Communities.
www.africabusinesspanel.com.