IFC gives details of $115m syndicated loan to Vodafone Ghana
The International Finance Corporation (IFC), a member of the World Bank Group, says the $115 million syndicated loan for Vodafone Ghana came from Chinese, German, and African institutions.
According to a press release issued by IFC on June 13, 2011, “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 what the IFC describes as 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, the release said. The debt package, the release indicates was the IFC’s first syndication with the Export-Import Bank of China and China Development Bank.
The Director of Syndicated Loans and Management at the IFC, Ritva Laukkanen, 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.”
IFC says in 2010, it provided Vodafone Ghana with a $100 million loan from its own account consisting of a $75 million senior loan and $25 million subordinated loan.
Vodafone Ghana CEO, Kyle Whitehill was quoted by the release as saying “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”.
The loan is to help Vodafone Ghana enhance its telecommunications network, and spread the benefits of mobile phone and broadband services in Ghana, especially in rural areas.
Over the last 10 years, the IFC says it has invested over $1.2 billion in 42 mobile phone projects spanning 15 countries in Africa.