Liquid Telecom has closed a fund raising round intended to help reduce the firm’s debts and invest in infrastructure in Africa.
In a statement, the company said it had raised an additional Sh18.7 billion ($180 million) in a tap sale.
The company, which has a presence in 13 African countries including Kenya, will repay a Sh14.9 billion ($145 million) loan. Clearing this debt, Liquid says, will simplify the company’s capital structure.
Liquid will channel the rest of the funds into growing its fibre network across the region.
“The funding will enable Liquid Telecom to continue to deliver its strategy to further expand and enhance its pan-African fibre network,” said Liquid Telecom Group chief executive, Mr Nic Rudnick.
Mr Rudnick added that the company would also target businesses with cloud services.
On the consumer segment of the market, Liquid hopes that selling video content alongside connectivity will drive the penetration of its Hai home fibre brand.
The tap sale was on a July 2017 bond and term-loan issue in, which the company had raised Sh72.6 billion ($700 million). In the statement, Liquid Telecom said that investor appetite reflects the strong performance the first half of 2017.
The additional notes have an interest rate of 8.5 per cent per annum and were sold on the same terms as the original July issue.