Irene Charnley, Chief Executive Officer of Smile (PRNewsFoto/Smile)
PORT LOUIS, Mauritius, September 8, 2015 /PRNewswire/ --
Smile Telecoms Holdings Ltd ("Smile"), which owns and operates mobile wireless 4G LTE broadband networks in the 800MHz band in Nigeria, Tanzania and Uganda, announced that it raised USD365 million of debt and equity financing ("the funding"). The funding will be used to expand Smile's existing 4G LTE mobile broadband networks and services, such that by the end of 2015, Smile will offer clear voice services and have national coverage comparable to the largest 3G network in each of its current countries of operation. Smile will also launch its broadband network in Democratic Republic of Congo ("DRC") early in 2016.
(Photo: http://photos.prnewswire.com/prnh/20150907/264172 )
The funding is comprised of USD50 million of equity, raised from the Public Investment Corporation on behalf of Government Employees Pension Fund ("PIC"), and a USD315 million multi-tranche, multi-jurisdictional debt facility led by African Export-Import Bank with participation from the Development Bank of Southern Africa, Diamond Bank PLC, Ecobank Nigeria, the PIC, the Industrial Development Corporation of South Africa Limited and Standard Chartered Bank. Smile's shareholders now comprise Al Nahla Group, a Saudi Arabia-based company, which is the majority shareholder; Renven Investment Holdings, a pan-African investment vehicle, in which Nigerian investors, including the Obijackson Group, are the majority; Verene, representing Smile senior management and social entrepreneurs from South Africa; Telecom Investments, a Saudi Arabian-based investment company; Capitalworks, an active alternative management company, specialising in investment in the African mid-market"; the PIC; and Smile employees.
Under the terms, the funding will be used to accelerate national network roll-out, including equipment and services provided by Alcatel Lucent and Ericsson, a full MPLS (Multiprotocol Label Switching) network, a London Point of Presence and expanded international backhaul services, and to fund operational expenditure and working capital.
Smile's objective is to become the broadband provider of choice for super-fast data and clear voice in each of its markets and to provide over 300 million potential customers in its four countries of operation with a fast, reliable and high quality platform to accelerate development and wealth creation. There is persuasive evidence linking broadband to job creation; the Brookings Institution states that "for every one percentage point increase in broadband penetration, employment is projected to increase by 0.2 to 0.3 percent per year." Furthermore, according to the Broadband Strategies Handbook by The World Bank, "a 10 percent increase in the penetration rate of broadband in developing countries is associated with a 1.4 percent increase in GDP per capita."
The funding is one of the largest capital raises ever for a telecommunications operator in Africa and brings the total funding committed to Smile since its founding in 2007 to approximately USD600 million.
Darisami International Consultancy Ltd acted as financial advisor to Smile.
Irene Charnley, Chief Executive Officer of Smile, said, "Now that we are fully funded to deliver national coverage of unrivalled super-fast internet access and clear voice services, our priority is to ensure that our customers experience and benefit from the power of high speed mobile broadband compared to the narrowband services available to date, including how to effectively manage the superior experience in terms of data consumption."
Sheikh Mohammed Sharbatly, Deputy Chairman of Smile, said, "I have recently had the joy of using the Smile network in Nigeria, and the quality is better than what we experience in the United Kingdom and in Saudi Arabia. By licensing 800MHz spectrum for commercial use at an early stage relative to many other countries, including high-income ones, the governments of Nigeria, Tanzania, Uganda and the DRC have each demonstrated commitment to be at the forefront of the broadband revolution and to accelerate development and GDP growth, and we commend them."
About Smile Telecoms Holdings Ltd
Founded in 2007 and incorporated in Mauritius, Smile is a pan-African telecommunications group with operations in Nigeria (Smile Communications Nigeria), Tanzania (Smile Communications Tanzania), Uganda (Smile Communications Uganda) and the Democratic Republic of Congo (Smile Communications DRC) and has an associate company in South Africa.
Smile has a single transformative objective of using the best and most innovative technologies to provide its customers with fast, reliable, high quality, easy to use and affordable communication services.
In 2012, the company launched Africa's first 4G LTE commercial network in the 800MHz band (ITU "band 20") in the East African market, starting in Dar es Salaam, Tanzania and then Kampala, Uganda. This was followed by the launch of West Africa's first 4G LTE commercial networks, also in band 20, starting in Ibadan and then Lagos, Nigeria.
Smile's vision and mission is to be the broadband provider of choice in all its markets and enable its customers to benefit fully from the Internet world for data and voice.
On behalf of: Smile Telecoms Limited
http://www.smilecoms.com
SOURCE Smile
CONTACT: Issued by: Samantha Watt Watt Communications Cell: +27-84-458-4857 Email: Samantha@wattcommunications.co.za
Top Reports
10:00 ET
- Meet Government Players at 22nd Africa Oil Week 2015
- - Global Pacific & Partners hosts the 22nd Africa Oil Week in JV with ITE Group plc 26-30 Oct, Cape Town, South Africa Meet Africa's Governments, state oil firms, licensing agencies, and the key officials and corporate players from super-majors to independents across the Continent, including...
- More news about: Global Pacific & Partners
09:00 ET
- A.T. Kearney's African Retail Development Index Points to Promising New Markets for Global Retailers
- A.T. Kearney's 2015 African Retail Development Index (ARDI) reconfirms the potential of many nations throughout Africa—not just oft-discussed markets like Nigeria and Ghana, but also small, dynamic markets such as Gabon, the ARDI's top-ranked market and home to Sub-Saharan Africa's...
- More news about: A.T. Kearney
08:30 ET
- The Baby Clothing Market Forecasts to 2020 With 30 Company Profiles
- Global Baby Clothing Industry 2015 Market Research Report and Baby Clothing World Report research titles provide an outlook into the baby clothing market, its leading players including profiles of 30 companies, trends and forecasts to 2020. Complete baby clothing market 2015 - 2020 report spread...
- More news about: ReportsnReports
03:00 ET
- The Inaugural Insurance Penetration West Africa 2015 Summit Set to Take Place Next Month in Dubai
- Insurance companies, Investors, Ratings agencies, Private Equity firms and many more to gather at the IPWA summit on 21-22 October in Dubai. K2A is proud to bring you the inaugural 'Insurance Penetration West Africa Summit' taking place 21-22 October at the prestigious Dubai Creek Golf &...
- More news about: Konnect2Africa Ltd
02:30 ET
- African Energy Market Needs Coherent Public Sector Involvement and Policy to Fulfil Emerging Market Needs
- The 17th East African Power Industry Convention (EAPIC) took place at the Kenyatta International Convention Centre in Nairobi, Kenya from 27-28 August 2015. The convention drew crowds from a number of top utility and service provider companies, including: KenGen, Eskom, GE, Powertech, Cummins and...
- More news about: Frost & Sullivan , East African Power Industry Convention
Tweet
No comments:
Post a Comment