The financing facility was organized by Afreximbank, acting as global coordinator and mandated lead arranger, while Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), acting co-arranger, mobilized funding from a pool of European development finance institutions comprising DEG, Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. and Societe De Promotion Et De Participation Pour La Cooperation Economique (PROPARCO).
African financial institutions participating in the syndication include the Southern African Trade and Development Bank and Stanbic Bank Zimbabwe Limited.
Under the terms of the syndication, Econet will use the proceeds of the facility for the expansion of new business areas, such as its mobile banking and solar energy businesses, as well as for refinancing existing debt relating to its telecommunications network infrastructure.
“The closing of this facility represents a clear demonstration of Afreximbank’s commitment to partnering with African and international financial institutions to support the growth of African multinationals,” said Jean Louis Ekra, President of Afreximbank, in an address at the close of the facility.
“Afreximbank is determined to continue to working with leading African entities, like the Econet Group, which are making great strides in connecting Africa through their innovative telecommunications solutions and, in-turn, enhancing intra-African trade, which is a cornerstone of the Bank’s mandate.”
Craig Fitzgerald, Econet Group CEO, said, “Afreximbank has again shown its leadership in enabling the expansion of African companies by leading this syndication which will provide Econet with the ability to further expand its product ranges and footprint across the African continent.”
The new syndication is part of a multi-creditor security sharing arrangement coordinated and arranged by Afreximbank, which closed in May 2012. Under the arrangement, Afreximbank, as global security agent, holds security for Econet’s various creditors, including the China Development Bank Corporation, Ericsson Credit AB and Industrial Development Corporation of South Africa.