Seacom Debt

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 SEACOM (the “Company”) is a digital infrastructure company operating broadband infrastructure, including a subsea cable, a continent-wide internet protocol (IP) network, and enterprise solutions for large scale clients. Founded in 2009, SEACOM launched Africa’s first broadband submarine cable system along the continent’s Eastern and Southern coasts. Since then the company has organically and inorganically expanded its network to currently operate ca. 18,000km of submarine fiber, which carries ca. 70% of South and East Africa’s IP traffic, and 4,120 km of terrestrial fiber. SEACOM’s primary countries of operations are Kenya and South Africa, with presence in Mozambique, Tanzania and Uganda. SEACOM is organized across three companies, namely i) SEACOM South Africa (Pty) ltd, ii) SEACOM Capital Ltd, which operates all non-South African subsidiaries, and iii) SEACOM Shared Services, where the majority of SEACOM personnel are employed to work across all SEACOM assets.  IFC’s proposed investment is seeking to support SEACOM’s capital expenditure requirements to facilitate i) the expansion of its integrated enterprise business by enhancing connectivity for businesses in the Africa region, ii) expanding its existing footprint by way of fiber expansion to include West Africa and iii) extending the life of its subsea assets with like for like equipment replacement. The latter will be achieved via technology upgrades and as required like-for-like replacements of its subsea fiber cable network. Expansion of its existing footprint will be undertaken via a combination of leasing pre-existing fiber via third parties, asset acquisition and the rolling out of its own fiber installations. On occasion, SEACOM may work with a fiber company to install fiber cabling specific to SEACOM’s network coverage needs, which SEACOM will ultimately lease optical fiber from. In such cases SEACOM is referred to in this disclosure as an ‘anchor tenant’. SEACOM leases space in third-party data centers, and while it does not own or operate its own data centers SEACOM owns and operates a number of points of presence and repeater sites across the markets in which it is present.