Axian Bond II

active

IFC is considering anchoring Axian Telecom’s bond issuance of up to US$550 million (the “Project”) with an investment of up to US$75 million. The financing will be used for (i) refinancing the outstanding bond, (ii) financing the acquisition of Wananchi Group, a broadband internet supplier headquartered in Kenya; and (iii) general corporate uses. This initiative is part of the company’s expansion strategy in Africa which focuses on roll-out in underserved areas. Axian Telecom (“AT” or the “Holding Company or Holdco” or the “company”) is an integrated provider of telecommunications (voice and data) services, digital infrastructure and mobile money services (see webpage at https://www.axian-telecom.com/en/homepage/). AT operates in 10 markets across the African continent via its subsidiaries or operating company’s (Opcos). AT’s major footprints of owned towers (operated by its tower companies or ‘TowerCos’) are primarily located in Madagascar, Tanzania, Uganda, Togo and Comoros. Operations pertaining to mobile, fixed and internet services, and financial services, necessitate minimal physical infrastructure. The business operates under a tiered contracting structure, engaging main contractors to oversee and execute key projects such as tower construction, operation and maintenance, and for fiber network laying. Main contractors typically hire subcontractors for specific tasks, such as security services, transportation and refueling among others.AT is a repeat IFC client since 2019 and has four active investments both at the holding company and operating subsidiaries level, including ‘Telco SA’ (IFC Project #37209) committed in 2019 with the Environmental and Social Review Summary or ESRS disclosed at https://disclosures.ifc.org/project-detail/ESRS/37209/telco-sa; ‘Axian Togo’ (IFC Project #44666) committed in 2019 and disclosed at https://disclosures.ifc.org/project-detail/ESRS/44666/axian-togo; ‘Axian Telecom Bond’ (IFC Project #46459) committed in 2022 and disclosed at https://disclosures.ifc.org/project-detail/ESRS/46459/axian-telecom-bond, where IFC acted as an anchor investor in a bond issuance of US$420 million; and the more recent ‘Axian Comoros II & Tanzania’ (IFC Project #49849) approved by IFC’s Board in Dec 2024 (disclosed at https://disclosures.ifc.org/project-detail/ESRS/49849/axian-comoros-ii-tanzania). Under the existing investments, the company has implemented various E&S performance improvement programs across its operations, including Telma Comoros, to comply with IFC's Performance Standards. As a result, the four ongoing projects have achieved satisfactory environmental and social (E&S) performance.