Econet Wireless, telecommunications provider with operations and investments in Africa, Europe, South America and the East Asia Pacific, has announced it has secured US$362 million for its African subsidiary.
The loan facility, arranged by AfriEximbank, was syndicated to development and financial institutions from Germany, France, China, Netherlands, South Africa and Sweden.
A big portion of the amount will directly go to Econet Wireless Zimbabwe. The subsidiary will receive US$307 million to finance some of its operation.
In a statement, Douglas Mboweni, CEO of the Zimbabwe business, said US$255million from the US$307million would re-finance existing short-term facilities, while US$52million will finance equipment purchases for further expansion.
He said the tenor of the facilities was an average of 5 years and the blended rate was LIBOR plus 5.3 percent.
LIBOR is the average interest rate that leading banks in London charge when lending to other banks
Zimbabwe is one of the company’s biggest markets. In April this year, the company reported it had 6.41 million subscribers, and its revenue topped US$611.1 million.
Econet Wireless has supported African innovations in Zimbabwe the latest being the ongoingZeTXT Challenge being held in conjunction withForgetMeNot Africa.
The deal was signed Wednesday in London in the presence of representatives from the financial institutions involved.
