Our investment
Description of the investment.
Description of the investment.
BII participated in Helios Towers' $850 million public bond offering with a $30 million anchor commitment alongside other anchor investors including IFC, DEG and the Emerging Africa Infrastructure Fund. Helios Towers is Africa’s leading independent telecoms infrastructure company, operating towers on over 14,000 sites and serving more than 144 million people across the continent. It operates in nine countries including Tanzania, the Democratic Republic of the Congo (DRC), Ghana, the Republic of the Congo (Congo Brazzaville), South Africa, Senegal, Madagascar and Malawi.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
The impact rationale for us to participate in this bond transaction centered around the catalysing market potential of the transaction. The bond market in Africa has witnessed limited interest from investors due to rising inflation, increased rates and turbulent geopolitical situation, which has resulted in capital outflows from Africa (and other emerging markets). DFI anchor commitments are viewed positively by potential investors, creating momentum in the transaction and thereby enhancing the prospect for a successful re-issuance. |
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How?
| Primary | Secondary |
|---|---|
|
Direct: Continued operations of telecom assets (mobile network operators and tower infrastructure) and growth capital expenditure to expand network and operations. Indirect: Increased coverage and better service quality creates indirect jobs and enhances firm productivity, supporting economic growth. |
Catalysing markets: As an anchor investor we will support crowding in and mobilising institutional capital along with commercial capital, operating in underserved telecommunication markets (alpha countries). |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Customers |
Tanzania, DRC, Ghana, Congo Brazzaville, South Africa, Senegal, Madagascar, Malawi |
The mobile penetration levels in the key geographies where the company operates are 48% (Tanzania) and 27% (DRC). The 4G penetration levels are also lower than the regional average in these countries (Tanzania – 20%, DRC – 15%). |
| Citizens, employees of enterprises |
Tanzania, DRC, Ghana, Congo Brazzaville, South Africa, Senegal, Madagascar, Malawi |
Productivity benefits felt by employees of businesses that use the internet and can increase productivity through faster speeds, which is likely to mostly include urban and large-scale businesses. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Expected to add an additional subscriber base of 20 million to the existing 144 million. |
Impact will be deeper for new subscribers that previously have not had access to mobile or data services. Impact maybe shallower for clients that are already connected but will experience improved quality. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Our contribution is driven by our role as an anchor investor in bond re-issuance (100% refinancing). It is expected this will help demonstrate bond viability in markets that are less familiar to bond investors, as well as mobilise at least 70% of total capital raise from non-DFI investors. A scale-back mechanism is also included in the structure if the bond is over-subscribed. Given the bond structure, we do not anticipate significant value-add initiatives. |
Risk
Evidence RiskIt will be difficult to distinguish and confidently attribute the market impact specific to this transaction. This risk needs to be tolerated. Alignment RiskHTA has current exposure to Middle East (Oman) contributing to ~7% revenues (17% out of the total 14,000 towers in Oman). However, the alignment risk is deemed Low given that HTA have indicated that Oman sites is expected to be financed locally internal accruals. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
Building on other DFI environmental and social action plans, we agreed additional points on a) contractor management, b) safeguarding management, and c) supply-chain management.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- September 2024
- Last updated
:
When the last quarterly update of the website database occurred.
- September 2024
- Project number
:
An identifier number shared by investments in the same project.
- D6895
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- West Africa
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Communications and IT services
- Investment type :
- Debt
- Start date :
- May 2024
- Amount :
- $20m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- United Kingdom
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type:
- Mitigation
- 2X Gender Finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- First published
