Teraco secures R200m in debt funding
Teraco Data Environments, a colocation data centre operator and Internet exchange hub, says it has secured a R200 million medium-term funding facility from Absa’s Corporate and Investment Banking division.
Teraco says that the funding facility will enable continued expansion of available space in its data centres in line with client demands.
The group plans to expand its data centres in Cape Town and Johannesburg by a further combined 4MW of power and 3,000 square metres of operating data centre space.
Teraco’s data centre facilities enables clients to co-locate their key telecommunications equipment, internet requirements, storage facilities, cloud, hosting and other IT infrastructure services, in a scalable way.
Teraco says it has has significantly expanded its footprint over the past three years, to three state-of-the-art data centres located in Cape Town, Durban and Johannesburg, which combined, comprise 6.6MW of power plant, powering over 4,000 square metres of operating data centre space.
“The funds raised are the largest by an independently owned African data centre operator and will enable Teraco to continue to expand facilities in line with clients needs,” said Jan Hnizdo, Teraco’s CFO.
“Teraco is experiencing a high demand for its premium data centre services, and the demand continues to grow. This growth is strongly underpinned by growth in the internet and cloud,” said Lex van Wyk, CEO of Teraco.
“A major factor in selecting Absa CIB, above proposals obtained from other funding institutions, is that as a member of Barclays it is truly fully local and fully global,” said Hnizdo.
“Barclays has assisted key international data centre operators worldwide such as Equinix, Interxion and Telecity with their funding requirements and therefore has the in-house skills to understand the business models of data centre operators and their unique funding requirements.”
“The facility allows Teraco to refinance its existing debt facilities, together with a flexible draw facility to fund future infrastructure investments,” Hnizdo said.
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