IHS Holdings Issues Oversubscribed $1.2 billion Bond.
IHS Holdings Limited, the largest independent owner, operator, and developer of shared telecommunications infrastructure in Africa has successfully raised an impressive $1.2 billion through an oversubscribed issuance.
This funding milestone underscores the rapid expansion of Africa's digital landscape, where the demand for connectivity and infrastructure is increasingly vital to economic development and social progress. The escalating demand for data—intensified by advancements in artificial intelligence and increased digital engagement within the population—highlights the necessity for robust and reliable telecommunications infrastructure. The widespread adoption of smartphones and various online services further drives this trend across urban and rural African communities.
Despite Africa facing a yearly infrastructure funding gap of $130 billion to $170 billion, as reported by the African Development Bank, the oversubscription of this offering, which exceeded $2.3 billion, demonstrates the heightened interest from private investors who recognise the substantial potential for returns in Africa's telecommunications and digital infrastructure sector.
The Emerging Africa & Asia Infrastructure Fund (EAAIF), a subsidiary of the Private Infrastructure Development Group (PIDG) managed by Ninety One, served as a co-anchor investor. Other notable entities, such as the International Finance Corporation (IFC) and Proparco, collaborated in this investment effort, emphasising a collective drive to support telecommunications infrastructure development in Africa.
IHS Holdings seems committed to enhancing its operational capabilities, improving service delivery, and addressing the increasing demand for reliable telecommunications services. The funds raised will be instrumental in refinancing the existing debt of IHS Holdings while also providing financial resources to support growth initiatives in key African markets, specifically Côte d'Ivoire, Nigeria, Rwanda, South Africa, Cameroon, and Zambia.
