Standard Bank acts as Joint Lead Manager and Bookrunner on Liquid Telecom’s debut High Yield Bond offering

Aug 03, 2017

Johannesburg, 18 July 2017: On 6 July 2017, Standard Bank acted as Joint Lead Manager and Bookrunner on Liquid Telecom’s debut high yield bond offering. Liquid Telecom is the largest multi-country, open access fibre and data centre operator in Africa with a 50,000km long fibre network connecting 9 countries in the region, and serving over 113,000 enterprise, carrier and retail customers. The US$550m 5-year 144A/ Reg S Senior Secured Notes bear an interest rate of 8.5% per annum and are part of a larger financing package, which also comprises a US$150m Term Loan and an undrawn US$55m Revolving Credit Facility. 

Liquid Telecom’s successful debut in the public debt capital markets constitutes an important milestone for the Company and the wider African telecoms sector. The bond offering will allow Liquid Telecom to refinance short-term debt, including the bridge loan for the acquisition of Liquid Telecom South Africa (formerly Neotel) and to secure long-term funding for the expansion and enhancement of its pan-African fibre network. Furthermore the bond issuance has raised Liquid Telecom’s corporate profile within the international investor community. 

Javier Penino Vinas, Head of Debt Capital Markets at Standard Bank, commented: “Standard Bank was pleased to play a key role as Joint Bookrunner on Liquid Telecom’s highly successful debut bond offering. With sentiment towards emerging market risk remaining positive, we continue to see high levels of interest from both local and international investors for quality debt issuances from Africa. This transaction also demonstrates Standard Bank’s leading position in debt capital markets for African corporates.”
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