The International Finance Corporation (IFC) has announced a US$1.2bn dual tranche bond issuance, the organisation’s largest ever mobilisation of a single bond deal, for IHS Towers to support digital connectivity across the towerco's emerging markets in Africa, Latin America and the Middle East.
The funds will enable IHS Towers to refinance some of its near-term debt and lengthen its debt maturity profile, as well as support organic growth.
The IFC have been historic investors to IHS Towers and the African towerco sector, supporting the role that towercos play in improving digital connectivity, especially in emerging markets. Estimates suggest 95% of people without internet reside in low and middle-income countries and expanding access to good quality internet services will be critical to economic and social development.
Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa said that “this investment represents a transformative step toward closing the digital divide and driving sustainable, inclusive growth in emerging markets”.
Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources in Africa said “our collaboration with IHS Towers underscores our shared commitment to driving sustainable development globally, particularly in Sub-Saharan Africa”.
The announcement also highlights the investments IHS Towers have been making in integrating solar power and energy efficiency systems to reduce their carbon footprint, another key driver of sustainable development.
IHS Towers has been a focal point in the African towerco sector, after its exposure to headwinds in Nigeria in 2023 sent the firm into a downward spiral, leading to a record-low share price of US$2.40 in March 2024. Following this, the group announced a strategic review to readjust course.
As a result, the IHS Towers has been exiting some of its markets, including in Peru and most recently Kuwait, as well as considering potential exists of Rwanda and Zambia. IHS Towers’ Q3 financial results highlighted a reduction in capital expenditure and announced further capex savings for the remainder of 2024.
This latest bond issuance follows other financial restructuring acts to manage maturing debt and moving future debt from US$ to local currency. Most recently, the towercos took out a 3-year US$600mn loan in October, half in South African Rand, that was used in part to pay off US$430mn of previous debt from 2022.
