The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group company managed by Ninety One, signed a private debt commitment with Liquid Intelligent Technologies (Liquid) totaling US$ 50 million this week.
The US$ 50 million loan forms part of a US$ 450 million restructuring and expansion package for Liquid that will support its 110,000 km terrestrial network running through 25 African countries including Kenya, Zimbabwe, and South Africa.
“This partnership with EAAIF represents both a financial and strategic milestone for Liquid. The strengthening of our balance sheet will be crucial to our cross-border fibre network and the continuation of Africa’s digital growth story,” said Hardy Pemhiwa, Liquid Intelligent Technologies Group Chief Executive Officer.
According to a press release the EAAIF investment will be used to optimize Liquid’s capital structure and maintain its cross-border fiber networks. These networks have become critical for African data storage and processing. They also serve major operators, local enterprises, and hyperscalers through the provision of reliable connectivity.
Earlier this year, Liquid closed a US$ 660 million debt refinancing round including a US$ 300 million Eurobond that was oversubscribed 2.5 times. The company said at the time that the refinancing round gives it more headroom to invest in connectivity, cloud, and cybersecurity.
Alongside the Liquid commitment, EAAIF also extended a US$ 32.8 million secured loan to Eastcastle Infrastructure DRC to construct 728 new telecom towers in the Democratic Republic of Congo.
“A robust, reliable digital backbone is the lifeblood of any modern economy. These commitments to Eastcastle and Liquid demonstrate our belief in Africa’s digital expansion through localised access points and pan-African corridors, which must work simultaneously to power the continent’s future,” said Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One.
EAAIF says these investments, totaling US$ 82.8 million, aim to de-risk and scale the physical and digital networks supporting Africa’s rapidly expanding digital economy.