Fibre infrastructure firm DFA raises R1.25 billion in funding

Dark Fibre Africa (DFA), a provider of open-access fibre infrastructure, says it has successfully secured additional term debt funding of R1.25 billion.

This follows the extension and increase to R1.1 billion of its revolving credit facility in December 2016.

Bloomberg reported in April that Remgro is in talks to sell DFA to Internet Solutions

The report stated that Remgro, which owns 51.9% of DFA, and investment partner New GX Capital want up to R10 billion for the business.

DFA said the debt facilities will be used to re-finance a maturing term loan and to finance the continued expansion of DFA’s extensive open-access national metro fibre footprint.

Cilliers Steyn, CFO of DFA, said: “We thank our lenders, a number of which have funded us since our inception in 2007, for their continued support. We are also pleased with the vote of confidence from Standard Bank and Sanlam, who have joined our syndicate of term loan providers, and from Govanhill Capital who have arranged the finance”

The new loans, of four- and five-year terms, increase the maturity profile of DFA’s debt funding, Steyn said.

The lender syndicate comprises a balance of banks, fund managers and financial companies, namely Absa, Futuregrowth Asset Management, Investec Asset Management, the KZN Growth Fund, Liberty Group, Rand Merchant Bank, Sanlam, Standard Bank and Stanlib Asset Management.

The revolving credit facility was provided by DFA’s syndicate of banks, comprising Rand Merchant Bank, Absa and Standard Bank, the fibre company said.

DFA has rolled out in excess of 10,000km of route fibre which it manages and operates, with an uptime of 99.99% at a passive level, it claims.

Read: Dark Fibre Africa in Internet Solutions’ sights for acquisition: report

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Fibre infrastructure firm DFA raises R1.25 billion in funding