IHS Holding Ltd. secures US$490 million to fund continued expansion across Africa

Transaction highlights

  • Significant funding round for IHS includes US$420 million of equity and US$70 million in debt
  • Existing shareholders contributing alongside new investors:  Goldman Sachs, the IFC Global Infrastructure Fund (GIF) and African Infrastructure Investment Managers
  • Senior debt is being provided by Standard Chartered Bank for expansion of IHS’ business in Zambia
  • Funding will be used for acquisitions and investment in new telecommunications infrastructure
  • Strengthens IHS’ standing as Africa’s largest independent telecommunications infrastructure company

3 March 2014: IHS Holding Ltd., Africa’s largest independent telecommunications infrastructure company by number of towers managed, has secured US$490 million of equity and debt in its latest financing round.  The round expanded IHS’ base of leading institutional shareholders and was priced at a premium to IHS’ July 2013 funding.  This is strong validation of the growing strength of the IHS platform throughout its 12-year track record in Africa.  Solid support from existing investors was combined with strong participation from Goldman Sachs, the IFC Global Infrastructure Fund and African Infrastructure Investment Managers.

This funding round brings the total amount of capital raised by IHS to more than $1.5 billion over the last 12 months.

IHS will utilise the proceeds of the round to finance acquisitions, help its customers expand coverage and capacity by building new towers and continue investing in alternative energy and green solutions that have a positive impact on the communities throughout Africa.

Issam Darwish, Vice Chairman and Chief Executive Officer, IHS, said:

“This important milestone confirms the broadening investor interest in the African telecommunications infrastructure space generally, and in IHS, in particular. We are excited to welcome our new investors to the IHS family and look forward to expanding support to our customers and partners throughout the continent. This funding will allow us to continue investing in technology, coverage and capacity new build sites, and the growing human resource component that will help IHS continue providing a quality service and product to an expanding customer base in Africa.”

IHS Towers currently owns and manages over 10,500 towers and has built over 3,500 for its clients across Nigeria, Cameroon and Côte d’Ivoire, making it Africa’s largest independent mobile infrastructure provider by number of towers managed.  In Q4 2013, IHS signed agreements with MTN in Zambia and Rwanda to acquire over 1,200 sites in Zambia and Rwanda.

Comments (2)

DawiedeVilliers

IHS portfolio in Nigeria consists of approximately 2435 sites. Could you confirm from which operators these sites were obtained – number of sites versus operator versus self built to suite?
Same goes with Sudan, approximately 720 sites. Please confirm number of sites versus operator versus built to suite? Your assistance would be greatly appreciated. Many thanks Dawie de Villiers

kosmotherly

The origin of IHS’ sites in Nigeria and Sudan is not in the public domain, and the portfolio’s are of a vintage that predates the existence of TowerXchange. However, I’m not aware of any announced sale and leasebacks to IHS in either market (yet!), so my guess is that they’re a result of BTS programmes.

I hope a reader from IHS might be able to confirm.

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