Accra, Ghana, June 13, 2011—IFC,
a member of the World Bank Group, has mobilized a $115 million financing
package for Vodafone Ghana from Chinese, German, and African institutions
to help the company enhance its telecommunications network, and spread
the benefits of mobile phone and broadband services in Ghana, especially
in rural areas.
The debt package includes financing from a diverse group of commercial
banks and development finance institutions, and is IFC’s first syndication
with the Export-Import Bank of China and China Development Bank.
The deal includes $82 million in syndicated, parallel loans from the Export-Import
Bank of China, China Development Bank and DEG (Deutsche Investitions- und
Entwicklungsgesellschaft mbH) and $33 million in B loans from Barclays,
Ecobank, Rand Merchant Bank and Standard Bank. IFC acted as the lead arranger
and will serve as the administrative agent for the project.
In 2010, IFC provided Vodafone Ghana with a $100 million loan from its
own account consisting of a $75 million senior loan and $25 million subordinated
Vodafone Ghana CEO, Kyle Whitehill, said, “IFC has introduced us to new
partners and sources of financing that will help us continue to expand
our service offerings in Ghana. We look forward to IFC’s continuing support
as we work to further the development of Ghana’s telecommunications infrastructure”.
Vodafone’s focus on improving internet services for businesses in Ghana
is an important tool in spurring innovation and increasing efficiency in
Ghana’s private sector. The company is also continuing its commitment
to improving mobile phone coverage in rural and remote areas.
Ritva Laukkanen, IFC Director of Syndicated Loans and Management, said,
“The completion of IFC’s first syndication with Chinese financial institutions
in Africa is an important milestone and we look forward to partnering on
many more projects in the future. This mobilization demonstrates the growing
appetite from commercial banks and development finance institutions to
support companies, like Vodafone Ghana, that are building the infrastructure
needed for long term economic growth in Africa.”
During the last 10 years, IFC has invested over $1.2 billion in 42 mobile
phone projects spanning 15 countries in Africa. IFC’s current investment
focus in Africa’s telecommunication sector is aimed at improving the availability
and reliability of affordable communications services, supporting the adoption
of new communication technologies and promoting technology enabled innovation
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.