DEG subscribes to bond issued by African telecommunications provider Axian Telecom
11-04-2022 12:51:00 | by: Marlene Mutimawase | hits: 2197 | Tags:

Fast, reliable telecommunications infrastructure and services at affordable prices are still a developmental bottleneck in Africa.

For the growing digital economy in African cities and rural areas, Axian Telecom offers secure, reliable Internet access and digital financial services in Tanzania, Madagascar, Togo, Senegal and Uganda. The company builds and operates telecommunication towers and provides fibre-optic networks and data centres. As a mobile-phone operator, the company serves nearly 30 million customers in various countries.

To improve liquidity for future investments in digital infrastructure and to refinance existing loans, Axian Telecom has placed its first corporate bond in the international capital market. As an anchor investor, DEG supported the successful placement by investing a total of USD 23 million in the USD 420 million bond issue.

The company plans to use the new funds, for example, to install 1,250 new mobile-phone antennas to improve 4G coverage in Tanzania. This will also create roughly 80 new jobs. In Uganda, the funds raised will allow to convert around 70% of existing mobile-phone towers to solar power. And in Togo, the company plans to achieve nearly 100% 4G network coverage by the end of 2022.

“We are pleased to be able to support Axian Telecom’s first bond issue. The company is investing heavily in the technological modernisation of African infrastructure and in training its more than 3,000 employees. That’s why we have been bullish on the group’s prospects since the very beginning,” says Andreas Cremer, DEG’s Department Head of Infrastructure & Energy Africa / Latin America.

As an anchor investor, DEG helps experienced companies from emerging markets and developing countries to gain a foothold in domestic and international capital markets. Through our long-term commitment, we stabilise bond issues and send positive signals to other investors.

www.axian-group.com