Paratus Namibia has raised a total of N$130 million from its second Namibian bond issuance.
The bond auction held on Tuesday, 13 September 2022, received offers worth N$363 million, almost three times the amount on offer from five institutions, where three-year and five-year bonds were offered to interested asset managers and other institutional investors within Namibia and South Africa.
The final result of the auction saw N$30 million worth of three-year bonds, with an interest rate of 8.508% and N$100 million worth of five-year bonds, with an interest rate of 9.058% allocated.
According to the pricing supplements, Paratus Namibia intends to use the proceeds from the raise to kit out the recently constructed Cable Landing Station in Swakopmund and the Armada Data Centre near Windhoek, and further continue to invest into its fiber and LTE networks as well as general network infrastructure.
Cirrus Capital acted as Paratus Namibia’s corporate and transactional advisor.
Paratus Namibia, launched its bond programme in 2021 as a way to raise money from capital markets within Namibia, with the first group of bonds issued in June of the same year, securing N$200 million in debt, used for growth and expansion of the local expansion of the company.
The June 2021 bond issuance was held on similar terms to the September 2022 issuance, also offering three- and five-year bonds, which similarly received more offers than there were bonds available.
Paratus Group currently has a physical presence within seven African countries, offering various internet and telecommunications services in a total of 37 African countries.
Paratus recently partnered with Google to land the Equiano Submarine Cable on the Namibian coast that is expected to be fully operational early 2023. The cable will increase internet and network speed in Namibia and neighbouring countries by providing the shortest network path between Southern Africa and Europe.
