Helios Towers Africa raises $600m in debut bond

Jason McGee-Abe
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HTA Group, a wholly-owned subsidiary of Helios Towers Africa, has closed a maiden corporate bond, raising $600m which will refinance existing indebtedness and lead to further infrastructure investment

Helios Towers Africa logoThe leading African tower company, which has network of more than 6,500 towers in Tanzania, Democratic Republic of Congo, Ghana and Congo Brazzaville, added that after refinancing some of its subsidiaries’ existing indebtedness, it intends to use the remainder of the net proceeds to:

(i) Fund the purchase price of the Vodacom buyout;

(ii) Fund the pending acquisitions of remaining sites not yet closed in DRC, Congo Brazzaville and Tanzania and a portion of its 2017 capital expenditures budget; and

(iii) Pay fees and expenses in relation to the offering.

Last July, HTA’s Democratic Republic of Congo subsidiary (HTD) announced the successful completion of a $105 million loan to help fund a Bharti Airtel’s tower portfolio acquisition and to finance future growth in the country.

"We take great pride from global investors' confidence in the platform and our ability to deliver the exceptional customer service that has driven over 60% growth in tenancies over the last 24 months," HTA CEO Kash Pandya reportedly told ITWebAfrica, adding: "With 52 million new subscribers forecast by 2022 across our four markets we look forward to helping our customers address the infrastructure gap needed to support this phenomenal growth."

The notes, which will be listed on the Irish Stock Exchange and will be due in 2022, was oversubscribed by three times.

They were guaranteed on a senior basis by HTA and substantially all of its subsidiaries, including HTA Holdings, Ltd, HT Congo Brazzaville Holdco Limited, Helios Towers DRC S.A.R.L., Helios Towers Tanzania Limited, Helios Towers Congo Brazzaville SASU, HT DRC Infraco S.A.R.L., HTT Infraco Limited, Towers NL Coöperatief U.A., McTam International 1 B.V., Helios Towers Ghana Limited, HTG Managed Services Limited and McRory Investment B.V. GTB