Axian Togo

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 Togocom (the “Company”) is a Togolese Mobile Network Operator (MNO) and the market leader in telecommunications with operations in the mobile, fixed and broadband segments. The company is the result of the pooling of resources and the reorganization of activities conducted in 2017 between Togo Telecom (TGT), the historic fixed telephony operator in Togo, and Togo Cellular (Togocel, or TGC), the mobile operator. In November 2019, Madagascar’s Axian Group (“Axian” or the “Sponsor”) and Africa-focused private equity firm Emerging Capital Partners (ECP) acquired a 51% stake in Togocom, while the State owns the remaining 49%. The new shareholders have developed an investment plan between 2020 and 2026 to improve the company’s infrastructure for mobile and fiber networks.IFC’s proposed investment is for the provision of a senior debt facility of up to €[43] million and the mobilization of up to €[127] million. The facility will help with implementation of the investment plan which includes expansion of radio access network (mainly 4G), fibre network as well as modernization of the core network to strengthen the digital infrastructure and cater to increasing demand, as well as refinance its existing debt (the “Project”). In addition to the infrastructure, the company operates a Network Operating Centre (NOC), 3 data centres, 5 warehouses and 41 retail stores.  The transaction pertinently excludes individual base stations (towers) that existed previously (before the stake was acquired) or have since been established by Togocom. As a condition precedent for the proposed investment, the towers will be sold to an independent tower operator, from which Togocom would then lease space for electronic equipment required to operate the network.