Eaton secures USD60m financing to develop Ugandan business and fund Ward deal

1 Nov 2012

Eaton Towers, the African infrastructure management company, has secured USD60 million in debt financing from Standard Bank Group, acting through Stanbic Uganda, and the International Finance Corporation (IFC), to build and develop new and existing cell towers across Uganda. The agreement marks Eaton’s second round of bank debt funding this year, following a USD30 million debt facility from Standard Bank Group, acting through Stanbic Bank Ghana and the Standard Bank of South Africa, earlier in the year. It also follows a USD150 million equity investment from Capital International Private Equity Funds (CIPEF), a private equity investor that focuses on emerging markets, which was secured by Eaton Towers in September 2011. The capital raised will be put towards funding Eaton’s acquisition of nearly 400 towers from Warid Telecoms in Uganda, announced in January, and to build up to 80 new towers in the country. Eaton Towers also acquired 300 towers from Orange Uganda in January, to give a total of 700 towers and national coverage in Uganda.

Peter Lewis, chief financial officer of Eaton Towers, commented: ‘This latest round of debt funding is a further validation of the Eaton Towers business model and management team, and a clear demonstration of our ability to efficiently leverage our assets across Africa. Mobile operators in Africa are increasingly viewing tower sharing as a key strategy to facilitate reductions in operating costs and CAPEX, enabling them to focus on providing mobile services. Eaton Towers is now a leading tower company in Uganda and this funding facility will allow us to further consolidate our position there’. Outside Uganda Eaton Towers also operates towers in Ghana and South Africa and has recently established a base in Kenya.

Uganda, Eaton Towers, Warid Telecom Uganda