In a statement, Africell, which recently won the tender to become the fourth mobile operator in Angola, announced that it had just secured additional funding of US$105M.
The loan, guaranteed by a syndicate of lenders historically linked to Africell and new ‘players’ with proven experience in emerging markets, was structured by Gemcorp and includes the participation of Gramercy Funds Management LLC, TC Credit Partners LLC and funds advised by Helios Investment Partners.
This loan comes in addition to another one of US$100M granted by the US Development Finance Corporation, in 2019 and renegotiated in May of this year.
“Together, these two loans are intended to support Africell’s growth plans in Africa, namely the start of operations in Angola, scheduled for the end of this year, and make its long-term strategy sustainable”, reads the statement.
According to Africell’s President and CEO, Ziad Dalloul, this loan “represents the company’s renewed long-term commitment to a group of strategic international financial partners.”
Ziad Dalloul, quoted in the note, underlined that the consortium is made up of world-renowned financial institutions with a relevant history of investing in emerging markets.
Also read: Africell signs contract with Angola to become country’s fourth telecom operator by year end
“Some are regular Africell partners, others are supporting us for the first time, which demonstrates the strength of our operations. With this loan, our group guarantees its long-term strategy for Africa, namely the growth of our operations and the achievement of the commercial objectives we have set for each of the markets in which we are already present”, he stressed.
According to Ziad Dalloul, the operation in Angola, which they hope to start before the end of 2021, will also benefit from the financing now granted to the Africell group.
In turn, the CEO of Gemcorp, Atanas Bostandjiev, expressed satisfaction for having contributed to the financing of Africell’s operations in Africa, especially because it materializes at a crucial moment in its history.
“This is the third financing we have given to Africell and we are doing it because we believe it will allow the company to expand the operations already underway and support its rapid implementation and expansion in Angola”, he said, stressing the importance of supporting companies operating in Africa’s telecommunications sector, a field that is showing outstanding growth rates.
In February this year, Africell won the international public tender for the fourth universal mobile communications license in Angola, launched by the Angolan government, with the aim of reforming the sector and contributing to the further development of its economy.
Africell is present in the African market with more than 12 million customers in countries such as Sierra Leone, Uganda, Democratic Republic of Congo and Gambia.