EAAIF Acts As Sole Impact Investor, Anchors Africell’s Debut Issuance Of USD300 Million International Public Bond

The USD300 million public bond issuance was oversubscribed with orders over USD550 million. The financing will support the roll-out of digital infrastructure across four countries, enhancing connectivity for Africell’s current 14 million customers and boosting future growth.

The investment demonstrates EAAIF’s pledge to accelerate the development of capital markets across Africa and South and Southeast Asia.

London, 30 October 2024: The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, managed by Ninety One, has invested USD 28 million and acted as the sole impact investor in an oversubscribed USD 300 million capital market maiden bond issue. Book orders over USD550 million meant that EAAIF could reduce its anchor commitment from USD40 million to USD28 million, allowing the participation of more private capital from a variety of international investors.

The proceeds of the issuance will support capital expenditure growth across Africell’s subsidiaries in Angola, the Democratic Republic of Congo (DRC), The Gambia, and Sierra Leone. This will strengthen the supply of mobile and data connectivity for approximately 14 million current subscribers, with conditions ripe for future expansion across these countries.

Magase Mogale, Africell’s Executive Vice President, said, “EAAIF was instrumental in the success of this process. Their support and involvement gave other investors confidence, resulting in our debut issuance being heavily oversubscribed. Launching the bond is a transformational moment for our company, as we offer investors exposure in four dynamic African countries”.

The transaction deepens Africa’s financial services landscape and diversifies fundraising sources for dynamic, fast-growth businesses. This bond issuance is the first by any corporate or state in two of Africell’s four established markets (The Gambia and Sierra Leone). It will provide international private investors with insight into these markets and create the opportunity for further, much-needed, foreign investment.

Tidiane Doucoure, Director, Emerging Market Alternative Credit at Ninety One Group, the Fund Manager of The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, said: “We are proud to have acted as anchor investor on the successful first bond issuance of Africell. At PIDG and Ninety One, we firmly believe in the development of capital markets and the mobilisation of private capital in low and middle-income countries. That’s the only viable way the trillions of dollars currently available in developed markets will be channeled to support the much-needed economic and social growth for the six billion people living in emerging markets. We are honored by the trust of Africell and our other partners, including the global banks that acted as bookrunners—JP Morgan, Citi, and Standard Bank.”

Developing Africa’s capital markets is a key priority for the Private Infrastructure Development Group and Ninety One. In 2020, sub-Saharan Africa, excluding South Africa, contributed just 0.02% to the global stock of international bonds. This presents a tremendous opportunity for global investors and ambitious businesses to increase access to growth capital from debt capital markets.