South African fibre infrastructure firm Dark Fibre Africa (DFA) has announced a ZAR3.5 (US$327 million) billion refinancing agreement with a syndicate of lenders to provide corporate debt facilities.
“We are pleased to be receiving this refinancing from a syndicate of lenders made up of existing and new funders,” said Thinus Mulder, chief financial officer (CFO) at DFA. “The funds will be used to replace our project finance funding and invest in new infrastructure in order to meet the growing demand for fibre infrastructure across South Africa.”
The refinancing provides DFA with ZAR1 billion (US$93 million) of general banking and revolving credit facilities and another ZAR2.2 billion billion (US$205 million) in loans from a syndicate of lenders.
“Demand for fibre to the business (FTTB) has been steadily increasing and funding institutions have recognised this. On the back of this, DFA received an overwhelming response by new funders that recognise our proven track record, successful business model and see value in providing funding to a company that is driving business success across the country,” Mulder said.
The lenders include Absa Bank, Development Bank of South Africa, Rand Merchant Bank, Futuregrowth Asset Management and Investec Asset Management.
“DFA, which was established in 2007, has grown considerably over the years and has now outgrown its project finance facilities,” said Mulder. “The refinancing will enable DFA to achieve its main goals of diversifying our providers of debt funding, allow for greater financial flexibility and substantially reduce our financing costs.”
Image courtesy of Shutterstock
