Liquid ECG

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  Liquid Telecommunications Holdings Limited (“Liquid” or the “Sponsor”), is the leading pan-African provider of wholesale voice, wholesale data, and internet protocol (IP) services, and an existing IFC client, and provides internet services across the African continent and in particular across various provinces in South Africa.  Consequently, Liquid, via its local subsidiaries (including Liquid Telecom South Africa and Liquid ECG Infraco, has rolled out extensive broadband services in various provinces. The Project entails the provision of broadband services, initially using microwave, before fully transitioning to fiber once the deployment is completed. During the initial 3 years, Liquid ECG Infraco will be rolling out over 7,000 kilometres of fiber. Liquid plans to implement the project through a wholly-owned special purpose vehicle (“SPV”). The project activities have commenced since mid-2022, and to date there has been a roll-out of 2,700 kilometres of fiber.  To support the Project, IFC intends to invest up to ZAR 900 million (or its equivalent in US$) consisting of (i) A Loan in the amount of up to ZAR 450 million (or its equivalent in US$); and (ii) financing in the form of (a) an MCPP Trust Loan and/or a B2 Loan in the amount of up to ZAR 450 million (or its equivalent in US$); or (b) alternatively, a Parallel Loan of up to ZAR 450 million. Liquid has been an IFC client since 2020 (see ESRSs disclosed: https://disclosures.ifc.org/project-detail/ESRS/44798/liquid-telecom-bond and https://disclosures.ifc.org/project-detail/ESRS/45192/liquid-telecom-equity). Liquid and LTSA currently have a satisfactory E&S performance as rated by IFC.