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Liquid Intelligent Technologies (Liquid) announced on Monday that it has closed a $660 million debt financing round, including a $300 million Eurobond that was oversubscribed by 2.5 times. 

The company said the debt raise was a test of institutional appetite for African credit, and that its outcome signalled a meaningful vote of confidence in the continent’s digital infrastructure story.

Liquid is a business of Cassava Technologies, an international technology company with operations in more than 40 markets across Africa, the Middle East, and Latin America. Liquid is a leading provider of pan-African digital infrastructure, with a 110,000-km fibre broadband network and satellite connectivity that provide high-speed Internet access across Africa.

The bond, listed on Euronext Dublin and issued under Rule 144A/Regulation S, formed the centrepiece of a broader debt paydown and refinancing completed by Liquid. 

“The transaction retires the company’s prior debt obligations, extends its debt maturity profile, and resets its balance sheet on terms that give management the financial headroom to accelerate the company’s growth and cement its leading position as a critical enabler of Africa’s digital transformation,” Liquid said in a statement.

It added that the company is growing cloud and cybersecurity revenues and positioning itself at the intersection of connectivity and AI infrastructure, thereby validating investors' credit allocation.

The bond was accompanied by syndicated ZAR and USD term loan facilities. The U$210 million ZAR syndicated term loan, provided by Nedbank, Rand Merchant Bank, Standard Bank, and the International Finance Corporation, provides a natural currency hedge against Liquid’s substantial South African revenues, according to the statement. 

“The US$150 million syndicated term loan was provided by Ninety One, via its own funds and the Emerging Africa and Asia Infrastructure Fund and The Mauritius Commercial Bank Limited (MCB). Together with the US$195 million fresh equity injection by Cassava, these instruments retire our prior debt obligations, extend Liquid’s debt maturity profile and provide a natural ZAR currency hedge on our South African revenues, whilst placing net leverage on a firmly downward trajectory,” the statement said.

Anchor orders in the Eurobond were placed by leading development finance institutions (DFI), including DEG, the German DFI.

Fitch Ratings upgraded Liquid Intelligent Technologies ahead of the launch. Moody’s has placed the issuer on Review for Upgrade. 

J.P. Morgan, Rand Merchant Bank and Standard Bank acted as Joint Global Coordinators and Joint Bookrunners.

“This refinancing is a significant milestone, not just financially, but strategically,” Hardy Pemhiwa, Group CEO, Liquid Intelligent Technologies, commented. “A stronger, more sustainable balance sheet gives Liquid the platform it needs to pursue the full scope of digital transformation opportunities across Africa, from fibre and cloud to cyber security and AI-enabled infrastructure. The quality of the institutions that participated in this transaction is a statement of confidence in Liquid’s fundamentals and in Africa’s digital growth story.”