NuRAN said it has obtained a credit facility with a development finance institution (DFI) for up to EUR 8 million to fund some of its USD 30 million planned expenditure to install network infrastructure in Cameroon and the Democratic Republic of the Congo (DRC). This follows a separate announcement on 06 January of a DFI loan facility for USD 15 million. The combined proceeds of approximately USD 24 million will be used for deployment of up to 120 rural sites in Cameroon and 850 in DRC.
The loan facility is conditional on NuRAN raising the rest of the USD 30 million in funding for the project. NuRAN is in advanced discussions with other funding institutions for most of the remaining amount of USD 6 million. In addition, NuRAN has already contributed approximately USD 5.1 million in equity beyond the project expenditure, which includes the first phase of 122 sites in Cameroon through private placement proceeds previously announced, including Spacecom’s investment in July 2021. The balance of the funding is to be raised in cash through equity or additional debt.
A holding entity for the African operations is to be established for the project, and it is expected that the balance of funding will be raised at this level. Further debt and equity funding beyond the project will be contemplated at the appropriate time, which will allow completion of the construction of all 2,000 sites in DRC as well as the South Sudan contract with MTN announced last month.
