Massive financing for Axian Telecom: Global Development Finance Institutions pledge $600 million for the company's bond issue
Axian Telecom, a leading pan-African operator in telecommunications, mobile financial services, and digital infrastructure, has secured a significant bond issuance of $600 million. This investment has attracted over $1.3 billion in demand, making it one of the most oversubscribed transactions in the region.
The bond offers a 7.25% coupon to bondholders, providing a stable source of funding for the company's expansion in frontier economies across Africa, including Tanzania, Madagascar, and Togo. This investment will enable large-scale network expansions and technology upgrades for Axian Telecom, strengthening its position as a major player in the digital landscape of the continent.
The bond issuance has been supported by several development finance institutions, including the International Finance Corporation, British International Investment, DEG, Proparco, and the Emerging Africa & Asia Infrastructure Fund (EAAIF). Collectively, these institutions have committed $160 million as an anchor investment. EAAIF, a blended finance vehicle under the Private Infrastructure Development Group, has invested $40 million, underscoring its focus on deploying public and private capital into transformative infrastructure projects in Africa and Asia.
The participation of multiple global development finance institutions signals strong investor confidence in both Axian Telecom’s growth trajectory and the broader digital infrastructure sector in Africa. This financing supports Axian Telecom’s capital expenditures across its subsidiaries, enabling the company to scale innovative digital infrastructure and improve digital connectivity to millions of people across Africa.
Tidiane Doucoure, director for emerging market alternative credit at Ninety One, the fund manager of EAAIF, stated that expanding access to digital services unlocks new economic opportunities and greater financial inclusion, crucial drivers for intra-African trade and entrepreneurial growth. The investment by the Emerging Africa & Asia Infrastructure Fund will support Axian Telecom’s capital expenditure across its subsidiaries to drive economic growth and provide improved digital infrastructure to millions of people.
This latest bond issuance by Axian Telecom helps to strengthen Africa's nascent debt capital markets. Corporate bond issuances attract international investors, which helps to deepen market liquidity and confidence. Moreover, it underscores the immense potential of African businesses and the growing confidence of global investors in the region's digital future and champions like Axian Telecom.
Africa has a unique opportunity to leapfrog outdated systems and build a digitally empowered future due to its young, tech-savvy, and rapidly growing population. By investing in digital infrastructure, companies like Axian Telecom can help to bridge the digital divide, enhance access to mobile financial services, and support the ambitions of people across Africa in an increasingly connected world.
To date, EAAIF has allocated over $320m to telecom bonds, demonstrating its commitment to supporting the growth of digital infrastructure in Africa and Asia. This latest bond issuance by Axian Telecom lays foundations for connectivity "that spans nations, strengthens communities, and supports the ambitions of people across Africa in an increasingly connected world".
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- The $600 million bond issuance by Axian Telecom, supported by development finance institutions like EAAIF, is aimed at facilitating its energy transition and expansion in frontier economies, focusing on social impact projects across Africa.
- The significant bond issuance by Axian Telecom, with a focus on digital infrastructure development, will foster financial inclusion for millions of people in Africa, contributing to intra-African trade and entrepreneurial growth.
- The diversified group of development finance institutions backing Axian Telecom's bond issuance underlines their confidence in the company's growth trajectory and the potential of blended finance for infrastructure projects in Africa and Asia.
- As part of its mission to support Africa's development, EAAIF has allocated over $320m to telecom bonds, emphazising the crucial role of digital infrastructure in bridging the digital divide, bolstering mobile financial services, and aiding in the continent's energy transition.
