Namibia’s Cell One financing
The project financing of Namibia's second mobile phone network has been finalised with work already underway to provide the African nation with greater competition in its telecoms provision
The funds will be used to establish a national network for Cell One in Namibia and sees a significant investment in the African country [Transactions Database].
The IFC board has already approved an investment of up to US$32.5 million in the cable which will run 10,000km from the continent's southern tip to the African horn, connecting:
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South Africa
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Mozambique
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Madagascar
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Tanzania
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Kenya
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Somalia
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Djibouti
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Sudan
Another 13 adjoining countries will also be linked to the system as terrestrial backbone networks are completed through a broader World Bank Group initiative.
These include:
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Botswana
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Burundi
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the Central African Republic
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the Democratic Republic of Congo
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Chad
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Ethiopia
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Lesotho
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Malawi
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Rwanda
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Swaziland
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Uganda
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Zambia
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Zimbabwe
With commitment of this scale to an east coast African project and bank keen to invest in telecoms projects in individual states, the future looks busy in the sector - primarily for mobile investments on a country-by-country basis.
The project at a glance
Project Name | Cell One roll-out |
Location | Namibia, Africa |
Description | The roll-out of a new mobile phone service across Namibia |
Sponsors | PowerCom (Proprietary) Limited |
Operator | Nokia Siemens Networks |
EPC Contractor | Nokia Siemens Networks |
Total Project Value | Undisclosed |
Total equity | Undisclosed |
Equity Breakdown | TMP - 39 per cent NamPower - 37 per cent Namic - 12 per cent Old Mutual Namibia - 10 per cent PowerCom Educational Trust - 2 per cent |
Total senior debt | R535 million (US$75m) |
Senior debt breakdown | Investec - R237.5 million (US$33m) Nedbank Capital - R237.5 million (US$33m) Development Bank of Namibia - R60 million (US$8m) |
Senior debt pricing | Undisclosed |
Debt:equity ratio | Undisclosed |
Mandated lead arrangers | Investec Capital Markets Nedbank Capital |
Participant bank | Development Bank of Namibia |
Agent Bank | Nedbank Capital |
Account Bank | Nedbank Namibia |
Legal Adviser to sponsor | Deneys Reitz |
Legal adviser to banks | Bell Dewar Hall |
Model Auditor | PKF |
Technical adviser | Detecon |
Date of financial close | 10 August 2007 |
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