Eurobond backs Africa fibre growth

A 2.5-times oversubscribed Eurobond issued in a cautious and risk-selective market has highlighted strong investor confidence in Africa’s digital infrastructure sector and the long-term growth prospects of Liquid Intelligent Technologies

Liquid Intelligent Technologies has completed a US$660 million debt financing package, including a US$300mn Eurobond that attracted demand 2.5 times above the amount offered. The result signals robust institutional appetite for one of Africa’s largest independent fibre network operators.

The bond, listed on Euronext Dublin and issued under Rule 144A/Regulation S, formed the central element of a broader refinancing and debt repayment programme undertaken by Liquid, the pan-African fibre and technology business owned by Cassava Technologies.

According to the company, the transaction retires previous debt obligations, extends the maturity profile of its borrowings and resets the balance sheet on terms that provide management with greater financial flexibility to accelerate growth and reinforce Liquid’s role in Africa’s digital transformation.

The strong level of demand, despite a challenging capital markets backdrop, suggests investor confidence in Liquid’s underlying assets. These include a 115,000-kilometre fibre network spanning more than 25 countries, expanding cloud and cybersecurity revenues, and a strategic position at the intersection of connectivity and AI infrastructure.

The Eurobond was accompanied by syndicated ZAR and USD term loan facilities. A US$210mn ZAR syndicated term loan, arranged by Nedbank, Rand Merchant Bank, Standard Bank and the International Finance Corporation, provides a natural currency hedge against Liquid’s significant South African revenues.

A further US$150 million syndicated term loan was provided by Ninety One through its own funds and the Emerging Africa and Asia Infrastructure Fund, together with The Mauritius Commercial Bank Limited (MCB).

Alongside these facilities, Cassava Technologies injected US$195mn in fresh equity. Combined, the instruments retire prior debt obligations, lengthen maturities, improve balance sheet flexibility and place net leverage on a downward path.

Anchor orders for the Eurobond were placed by leading development finance institutions, including DEG. Their participation indicates confidence in the developmental importance of Liquid’s digital infrastructure across emerging markets.

Credit rating momentum also supported the transaction. Fitch Ratings upgraded Liquid Intelligent Technologies ahead of launch, while Moody's placed the issuer on Review for Upgrade.

J.P. Morgan, Rand Merchant Bank and Standard Bank acted as Joint Global Coordinators and Joint Bookrunners.

"This refinancing is a significant milestone, not just financially, but strategically. A stronger, more sustainable balance sheet gives Liquid the platform it needs to pursue the full scope of digital transformation opportunities across Africa, from fibre and cloud to cyber security and AI-enabled infrastructure. The quality of the institutions that participated in this transaction is a statement of confidence in Liquid’s fundamentals and in Africa’s digital growth story," remarked Hardy Pemhiwa, Group CEO, Liquid Intelligent Technologies.