Helios Towers plans to use about USD 450 million in newly raised funds to expand into African countries including Ethiopia, reviving an expansion plan that was put on hold by the Covid-19 pandemic, Bloomberg reported. Ethiopia is in the process of opening its telecom industry to private investors, with two new mobile licences up for auction alongside a minority stake in Ethio Telecom. As many as 10,000 new towers are expected to be needed over the next five years to support the expansion, Helios Chief Financial Officer Tom Greenwood said.
Greenwood said Helios is seeking a financing partner and working with mobile operators to give it a strong position to enter the market. The tower company raised about USD 1 billion from debt markets this week, Greenwood said, building on a successful initial public offering in London last year. The majority of the proceeds will be used to refinance existing borrowings, with the balance earmarked for expansion.
Helios is among a trio of firms, including American Tower and IHS Holdings, seeking to take advantage of cheaper and faster internet speeds to boost their African presence. While Ethiopia is the immediate focus, Helios is also looking for opportunities in nine other African countries including Morocco, Egypt and Madagascar. The company has a portfolio of 7,000 towers, and can add to that by building more or acquiring from wireless carriers that want to dispose of the equipment to free up capital for other ventures, said Bloomberg.
