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Key Points
- IHS Holding raised $1.2 billion in bonds to expand its telecom network across Africa, Latin America, and the Middle East.
- The financing, including a $100 million IFC commitment, will refinance debt and support IHS' growth, strengthening its global telecom infrastructure position.
- IHS' recent deal to sell a 70% stake in IHS Kuwait Limited for $230 million enhances its financial position and sustainability efforts.
IHS Holding, a global telecom infrastructure leader headed by U.S.-Nigerian telecom tycoon Sam Darwish, has successfully raised $1.2 billion in a bond offering aimed at expanding its network and addressing connectivity gaps across Africa, Latin America, and the Middle East.
This financing, which includes a $100 million commitment from the International Finance Corporation (IFC), will refinance existing debt and fuel IHS' growth initiatives, reinforcing its position as a dominant player in global telecom infrastructure.
The bond issuance, which serves a dual purpose—extending IHS’ debt maturity and alleviating short-term financial pressures—comes shortly after IHS announced an agreement to sell its 70 percent stake in IHS Kuwait Limited to Zain Group for $230 million.
IFC's investment promotes digital inclusion
This move not only addresses liquidity challenges but also strengthens IHS Holding's overall financial position. The partnership with IFC further signals a robust commitment to the company’s long-term sustainability and market expansion.
Dahlia Khalifa, IFC Regional Director for Central and Anglophone West Africa, emphasized the significance of the investment, stating, “This initiative will foster digital inclusion, innovation, and job creation, particularly in remote and underserved areas.”
Sarvesh Suri, IFC Regional Industry Director for Africa, echoed these sentiments, noting, “Our partnership with IHS Towers is a testament to our commitment to sustainable development, empowering communities in Sub-Saharan Africa to fully participate in the digital economy.”
IHS powers sustainability, growth
Founded in 2001, IHS Holding, operates over 40,000 telecom towers across Africa, making it the third-largest independent tower company globally. Recent contracts with MTN in Nigeria, South Africa, and Rwanda highlight its leading position in Africa's telecom infrastructure.
As part of its strategy to unlock value from early investments, IHS has signed an agreement to sell its 70 percent stake in IHS Kuwait Limited to Zain Group for $230 million. The deal, which includes 1,675 telecom sites and 700 managed locations, strengthens IHS Towers' balance sheet.
Despite a 10 percent revenue decline in Q3 2024 due to Nigeria's naira devaluation, IHS is focused on sustainability. In Nigeria, the company has installed four solar-powered boreholes in Maiduguri to assist flood-affected communities.
Looking ahead, IHS plans to expand its use of solar and energy-efficient technologies, reinforcing its commitment to reducing its environmental impact and boosting digital connectivity in emerging markets.
