Telecoms company Econet Wireless Global Limited has secured financing of US$362 million that it plans to use to help boost its operations in Zimbabwe and Burundi
The deal was worked out by Econet founder, Strive Masiywa, under advice from international law firm Clyde & Co, and the fund will be used to refinance the company’s short-term debt and upgrade telecommunications network infrastructure in Zimbabwe and Burundi.
commission GSM network equipment from ZTE Corporation China and Ericsson Sweden for implementation in the two countries.
Clyde & Co partner Peter Gray said, “We are delighted to have been involved in this ground-breaking deal for Econet. Closing this complex secured financing for these two jurisdictions is a credit to Econet and the financial institutions involved.”
The Clyde & Co team comprised lawyers from its London and Dar es Salaam offices, led by Gray and supported by legal director Peter Kasanda, and associates Teresa Hettich and Sabrina Ayub.
The complex deal included a five-year syndicated facility arranged by Afreximbank, co-arranged by the German development bank DEG, and with additional participations by FMO of the Netherlands and Proparco of France.
The financing also comprised bilateral deals between Econet and each of China Development Bank Corporation (CDB), Ericsson Credit, Industrial Development Corporation of South Africa (IDC) and the Eastern and Southern African Trade and Development Bank (PTA Bank), with maturities ranging from three to five years.
Barclays Bank Zimbabwe, Ecobank Burundi and TN Bank Zimbabwe are agent banks under the facility. Hogan Lovells acted for the Afrexim syndicate and White & Case for CDB.
