Bridging communication gap through colocating infrastructure solution
PAN African Towers Limited
Pan African Towers Limited is an independent owner and operator of digital infrastructure and wireless communications sites in Nigeria. The Company commenced business operations in Nigeria in 2017 and currently has c.1,000 towers across 35 of the 36 states in Nigeria, with over 600 active tower sites. PAT’s service offerings include; traditional services such as colocation, built-to-suit, managed services, buy-lease-back and Distributed Antenna Solutions (DAS) and value-added services (broadband, utility, content and support).
The Company has a diverse customer base that includes leading mobile network operators and internet service providers like Airtel, MTN, 9Mobile, Smile, Bitflux, ICSL, Spectranet, and Swift.
Project Highlight
PAT’s management is executing several strategic initiatives to drive its aspiration to become a clear leader in creating and operating digital infrastructure assets in Nigeria. The Company has an aggressive growth plan and aims to deploy up to 500 towers annually within the next five years to help bridge the coverage gap in Nigeria and accelerate the strong appetite for next-generation mobile broadband growth and internet penetration. The proceeds of the Bonds will finance the roll-out of new environmentally friendly tower sites to enhance telecommunication coverage and service quality, especially in underserved communities and towards reducing carbon footprint in the sector by swapping out diesel generators with renewable energy sources.
Development Impact
Access to infrastructure by increasing tower coverage and bridging the telephony and broadband coverage gap in Nigeria
- Job Creation – 12,149 direct and indirect
- Improve overall quality of life and standard of living
- Support economic development and social integration
- Reduce cost and improve quality of telecommunications
- Reducing up to 214,157 tonnes of carbon (C02) emission with green energy sources where feasible
- Poverty reduction
Transaction Details
With InfraCredit’s guarantee, PAT was able to access the domestic debt capital markets for the first time and successfully issued its NGN10.0 Billion 10-year Series 1 Guaranteed Infrastructure Bonds under a NGN50 Billion Bond Issuance Programme
The PAT Digital Infra Fund SPV PLC NGN10.0 billion 10-Year Series I Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2032 (the “PAT Series I Bonds” or “Bonds”) under a NGN50 billion Debt Issuance Programme were accorded a ‘AAA’ long term credit rating by Agusto and Co. and GCR, reflecting the high degree of creditworthiness and the robust quality of the Bonds. The Bond issue was oversubscribed by 127% by ten (10) institutional investors, including domestic pension funds and insurance companies. The Bond proceeds will be used to finance the roll-out of new environmentally friendly tower sites to enhance telecommunication coverage and service quality, especially in underserved communities. Additionally, PAT aims to apply some of the proceeds towards reducing carbon footprint in the sector by swapping out diesel generators with renewable energy sources.
Transaction Details
Investor Distribution
Development Impact
