Paratus Group has
secured funding of US$ 31 million to help realise its ambitious infrastructure
expansion plans, the pan-African telco says the capital injection will
significantly boost connectivity across key and currently underserved regions
and contribute to the Group’s goal of doubling revenue within the next five
years. The transaction was facilitated by Cirrus Capital, a 100%
Namibian-owned, broad-scoped financial services company, which acted as the
financial advisor for Paratus Group and lead arranger on the transaction.
The funding – from Emerging Africa Infrastructure Fund (EAIF), a
Private Infrastructure Development Group (PIDG) and fund manager, Ninety One –
will be used over the next three years to create additional fiber routes
connecting Angola, Botswana, Democratic Republic of Congo (DRC), Mozambique,
Namibia, South Africa and Zambia.
The investment will also be used to finance the completion of
Paratus’s first Tier IV data center (DC) in Angola. The state-of-the-art 10MW
facility will be the largest Paratus DC in Angola. It is designed to stimulate
the digital economy, capitalise on the opportunities created by subsea cable
systems in the region, and consolidate the Group’s strategy to create a
regional hub in Angola. The facility will be Paratus’s fifth carrier-neutral DC
in southern Africa and complements two other Tier-III (by design) DCs in
Luanda, Angola.
Ninety One, a global asset manager, mobilised capital from two of
its funds, EAIF and Ninety One Africa Credit Opportunities, to enhance
last-mile connectivity and to introduce more reliable internet services across
three sub-regions in Africa, including seven countries: Angola, Botswana, the
Democratic Republic of Congo, Mozambique, Namibia, South Africa and Zambia. The
transaction will help strengthen the continent’s core digital infrastructure,
which is fundamental to building more advanced economies in Africa.
Chief Executive Officer of Paratus Group, Schalk Erasmus says:
“This investment is a testament to our focus to greatly enhance cross-border
fiber connectivity and facilitate economic development in the region. It is
good news for African businesses, entrepreneurs and consumers throughout the
continent. It is also a great leap forward on our journey and mission to
transform Africa through exceptional digital infrastructure and customer
service.”
Chastin
Bassingthwaighte, Corporate
Finance Associate at Cirrus Capital says: “We conducted an extensive process
to secure Paratus Group the best possible funding for their needs, specifically
long-duration and cashflow friendly debt that supports their long-term
infrastructure roll out across the continent. Through this process, we
negotiated and completed this capital raising with Ninety-One, in part through
their Emerging Africa Infrastructure Fund. While a number of competitive
proposals were received, the Ninety-One offering stood out in terms of
suitability for Paratus’ specific requirements.”
This raising is the sixth capital raising we have done for the
broader Paratus group, and the seventh transaction, since 2017. Capital
raisings include equity raisings in Namibia and at Group level, a debt
programme on the Namibian Stock Exchange, and now debt at Group level. “We
are proud of our association with this inspiring team, and of the instrumental
role that we have played in securing capital for the group. These capital
raises have supported their growth and helped to derive broad stakeholder
benefits for founders, investors, employees, service providers, and
clients. We thank Paratus for the continued trust placed in us.”
Commenting on the agreement, Investment Specialist at Ninety One, Sine Zulu said:
“Building world-class digital infrastructure and facilitating fiber
expansion is critical to unlocking the potential across Africa. The
collaboration of Ninety One’s Africa Credit Opportunities and EAIF is a
progressive partnership designed to deliver high-impact infrastructure projects
and this funding will contribute to meeting the growing demand for connectivity
and data in Africa.”
