Proparco Supports Axian Telecom's $600 Million Bond Initiative to Broaden Africa's Digital Horizon
Proparco, a leading development finance institution, has announced a significant investment in Axian Telecom Holding's latest bond issuance of USD 600 million. The French organisation has committed USD 25 million to this public offering, marking its role as a key investor in the transaction [1].
This strategic investment by Proparco is set to accelerate digital inclusion in Africa by enabling Axian Telecom Holding to expand its digital infrastructure and services across the continent. The funds generated from the bond issuance will be used to support projects that increase digital connectivity and services, thereby helping to bridge the digital divide in African countries where access to telecommunications remains limited [1].
The investment aligns with Proparco’s broader mission of promoting sustainable development and financial inclusion in emerging markets. By backing this bond issuance, Proparco is facilitating increased digital access, which is crucial for economic growth, technological advancement, and inclusion of underserved populations in digital economies [1].
The investment supports key Sustainable Development Goals (SDGs) including SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 11 (Sustainable Cities and Communities) [1].
Axian Telecom's bonds were oversubscribed three times the transaction size, indicating strong market interest in the company's expansion plans. This partnership continues Proparco's support for African champions reshaping key infrastructure sectors [1].
Proparco's role as an anchor investor in this transaction is fully aligned with its strategy to accelerate digital inclusion across the continent. The company is part of a pool of anchor investors that includes the International Finance Corporation (IFC), DEG, BlueOrchard Finance (BII), and the Emerging Africa and Asia Infrastructure Fund (EAAIF) [1].
This is Proparco's third participation in a row in a public bond issuance in the Technology, Media, and Telecommunications (TMT) sector. In 2024, Proparco's activity will focus on Africa, with 50% of its activity on the continent. The organisation aims to support local digital ecosystem climate mitigation and adaptation strategies [1].
Proparco will also support Axian Telecom's climate adaptation strategy through tailor-made technical assistance. The company serves tens of millions of people, including in French overseas territories Mayotte and La Reunion, and operates in over 8 countries across Africa [1].
Proparco leverages its presence to mobilise private capital in support of inclusive and sustainable development. The organisation aims to support Axian's ambitious corporate sustainability strategy and build a long-term partnership [1].
Axian Telecom is a pan-African telecom and digital services provider, and Proparco has 13 regional offices across the globe. This investment marks another step in Proparco's commitment to supporting digital inclusion and sustainable development in Africa.
- Proparco's investment in Axian Telecom Holding's bond issuance of USD 600 million reflects their role as a key player in facilitating the expansion of digital infrastructure and services across Africa, which is essential for enhancing digital inclusion, economic growth, technological advancement, and the inclusion of underserved populations in digital economies.
- Given the strong market interest in Axian Telecom's expansion plans, as indicated by the bonds being oversubscribed three times the transaction size, this investment is an important step towards bridging the digital divide in African countries where access to telecommunications remains limited.
- This strategic investment by Proparco supports key Sustainable Development Goals (SDGs), such as SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 11 (Sustainable Cities and Communities), by promoting digital connectivity and services on the continent.
- As part of its commitment to supporting digital inclusion in Africa, Proparco will also work with Axian Telecom to develop and implement tailor-made climate adaptation strategies, to ensure that the company's growth aligns with sustainable development principles and contributes to reducing its environmental footprint.
