Liquid Intelligent Technologies has secured $660 million in debt refinancing, extending its financial runway and signaling strong investor confidence in Africa’s digital infrastructure.
Eurobond oversubscribed despite global market headwinds
The refinancing included a $300 million Eurobond listed on Euronext Dublin. Demand exceeded supply by 2.5 times, a rare achievement in a year when emerging-market issuance has slowed. The bond was issued under Rule 144A and Regulation S, targeting institutional investors.
Hardy Pemhiwa, Group Chief Executive of Liquid, described the transaction as a major step forward. He linked the refinancing to the company’s goals in fiber, cloud, cybersecurity, and AI-enabled infrastructure across the continent.
Investors backed the deal despite global caution toward emerging-market assets. Their support reflects confidence in Liquid’s business model, which operates in 25 African countries and includes a 115,000-kilometer fiber network.
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Debt package diversifies funding sources
The refinancing also included a $210 million syndicated term loan in South African rand. Nedbank, Rand Merchant Bank, Standard Bank, and the International Finance Corporation led the arrangement. The loan helps offset foreign exchange risk by matching rand-denominated revenue.
A $150 million syndicated term loan followed, arranged by Ninety One through its own funds and the Emerging Africa and Asia Infrastructure Fund, along with The Mauritius Commercial Bank. Cassava Technologies, Liquid’s parent company, added $195 million in new equity, further improving financial stability.
Development finance institutions played an important role in the deal. DEG, Germany’s development finance arm, placed an anchor order in the Eurobond, showing support for digital connectivity projects in Africa. Such backing often encourages private investors, who may view it as a sign of project viability.
Liquid has previously attracted funding from institutions like the IFC. These lenders prioritize projects with clear social or economic benefits, such as expanding internet access in underserved areas.
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Credit upgrades and reduced leverage
The refinancing is expected to improve Liquid’s financial profile by lowering leverage. Fitch Ratings upgraded the company ahead of the transaction, while Moody’s placed it under review for a potential upgrade. Both agencies highlighted the strengthened balance sheet and diversified funding base as key factors.
J.P. Morgan, Rand Merchant Bank, and Standard Bank served as joint global coordinators and bookrunners. Coordinating the refinancing involved managing multiple currencies, regulatory environments, and investor expectations across Africa.
The deal replaces older debt obligations, extending maturities and providing greater flexibility for future growth. This could support expansion into cloud services or AI infrastructure, areas where Liquid has already made progress. It also strengthens the company’s ability to handle economic challenges, a concern for any business operating across a continent with uneven growth.
For now, the refinancing provides breathing room. In Africa’s fast-moving digital sector, that advantage is valuable.
