📋 Tender Overview
To scale up access to quality mobile connectivity for millions of individuals and businesses across Africa and to further support the continents digital economy IFC today invested in a maiden bond issuance by AXIAN Telecom.The bond the first issued by AXIAN Telecom will refinance the companys existing debt and support its digital infrastructure network expansion primarily in Tanzania and Togo.By scaling up its digital infrastructure AXIAN Telecom will continue to promote Africas growing digital economy and digital finance by bringing accessible reliable and secure digital services in markets where access to affordable quality mobile connectivity remains challenging.IFC subscribed to 12 percent of the bond equivalent to 50 million as an anchor investor in a total issuance of 420 million.IFCs anchor investment will help us fulfill our ambition to be an end-to-end partner in Africans digital transformation journey and to secure their affordable access to digital infrastructure and services said Hassanein Hiridjee AXIAN Telecoms Founder and Chairman of the board.With internet access in Africa largely relying on mobile networks providing affordable and reliable mobile connectivity is an important way to bridge the digital divide said Makhtar Diop IFCs managing director. IFCs investment in AXIAN Telecoms bond is consistent with the World Bank Groups efforts to establish a more competitive and reliable telecommunications sector as part of the Digital Economy Initiative for Africa DE4A which aims to support the African Union AU digital transformation strategy for Africa.African countries on average spend about 1.1 percent of GDP annually on investments in digital transformation including digital infrastructure compared to 3.2 percent for developed countries.Capital markets are critical for filling the infrastructure investment gap in emerging and developing markets. Since 2019 IFC has supported digital infrastructure and other infrastructure companies with public bond issuances totaling over US3 billion with more than US500 million of IFCs own funds and by mobilizing an additional US2 billion in capital. AXIAN Telecom represents IFCs second recent bond investment in Africas digital economy. This investment follows IFCs participation in a bond issued by Liquid Intelligent Technologies Africas largest independent fiber data center and cloud technology provider. IFC is also an active investor globally in green and sustainability-linked bonds including Continuum Green Energys first green bond and IFCs first sustainability-linked bond investment with Sembcorp.Surging demand for digital connectivity during the COVID-19 pandemic led IFCs commitments to the telecoms media and technology sector in emerging markets to exceed US1 billion in the fiscal year ending June 2021. Almost three-quarters of the commitments were made in Africa.
