Ghana’s Surfline Communications has closed a $30m fund from Vantage Mezzanine, a mezzanine debt provider to help the firm expand its 4G LTE network in Ghana and bolster its product distribution and marketing network.
John Taylor, Surfline’s Executive Chairman, “Vantage provided us with growth capital in a shareholder-friendly structure that we required to expand the business by supplementing the existing financing in place.”
Surfline is Vantage’s second investment in Ghana after its $18.5 million investment in Genser Energy.
Launched in August 2014, Surfline provides wireless broadband to Ghana’s businesses, government agencies, professional and academic communities and residential users.
The investment in Surfline follows Vantage’s pan-African strategy of focusing on high-growth African markets such as Ghana, Nigeria, the East African Community members and some of the Southern African Development Community (SADC) countries.
Mutle Mogase, Vantage’s Chairman, said “Vantage, with the support of its investors, is contributing almost $50 million (R550 million) towards the improvement of infrastructure in Ghana by supporting the rollout of a broadband network and new power generation projects. The developmental multiplier effect of increased power generation capacity and high-speed internet will drive further economic growth in the country.”
Boasting as the country’s first 4G LTE mobile network in Ghana, up to 10 times faster than the average speeds offered by the existing mobile network operators and affordable, the firm aims to roll-out its services across its coverage area.
Surfline is the eleventh mezzanine transaction in Vantage’s second fund, of which more than 80% of available funds have been invested. More than half of the capital deployed has gone into growth projects such as Surfline. Vantage has commenced the raising of its third mezzanine fund, which is targeted to close by the first quarter of 2015 at $250 million (R2.75 billion).
Yaw Keteku, Associate Partner at Vantage leading their investment activities in Ghana, said “Under John Taylor’s visionary leadership, Surfline has assembled a team of highly-skilled professionals and technical partners who have built a first class communication network to meet Ghana’s ever-growing data demand. We have developed a close working relationship with the Surfline team and we look forward to supporting the business as it grows.”