Keypoints:
- Liquid raises $660m in debt and equity financing
- $300m Eurobond oversubscribed 2.5 times
- Deal signals renewed investor confidence in Africa
LIQUID Intelligent Technologies, owned by Cassava Technologies, has secured $660m in debt financing, including a $300m Eurobond oversubscribed 2.5 times, signalling renewed investor appetite for Africa’s digital infrastructure sector, the company said.
Why this matters
The transaction underscores a broader shift in how international investors assess African credit risk, particularly in technology and infrastructure, as capital becomes more selective in emerging markets. Strong demand for Liquid’s bond suggests that large-scale digital assets — especially fibre, cloud and AI-linked infrastructure — are increasingly viewed as bankable and important to the continent’s growth.
Strong demand signals investor confidence
The Eurobond, listed on Euronext Dublin and issued under Rule 144A/Regulation S, formed the core of a wider refinancing package designed to restructure Liquid’s balance sheet and extend its debt maturity profile.
Oversubscription at this level is notable. In a period marked by tighter global liquidity and rising borrowing costs, attracting such demand indicates that institutional investors are making targeted allocations to African infrastructure assets with scalable revenue potential.
Liquid operates one of Africa’s largest fibre networks, spanning more than 115,000 kilometres across over 25 countries. The company has also expanded into cloud services, cybersecurity and AI-enabled systems, supporting its growth outlook and positioning it within the broader African telecom financing landscape.
The company has also moved into cybersecurity, reflected in its recent rollout of cybersecurity solutions, aimed at addressing rising digital risks across African markets.
Refinancing reshapes balance sheet
The financing package includes multiple components beyond the Eurobond. A ZAR-denominated syndicated term loan equivalent to $210m was arranged by Nedbank, Rand Merchant Bank, Standard Bank and the International Finance Corporation.
This structure provides a natural currency hedge against Liquid’s South African revenues — a key consideration for investors focused on foreign exchange risk in African markets.
An additional $150m syndicated facility was provided by Ninety One, alongside the Emerging Africa and Asia Infrastructure Fund and The Mauritius Commercial Bank Limited.
The package is complemented by a $195m equity injection from Cassava Technologies. Together, these measures will retire existing debt obligations, extend maturities and place the company on a stronger financial footing.
The refinancing comes as Liquid continues to expand its continental footprint, including a major fibre route linking East and West Africa, improving connectivity and reducing latency across regions.
Development finance institutions anchor deal
A notable feature of the transaction is the participation of development finance institutions (DFIs), including DEG, the German development finance institution.
DFI involvement typically signals alignment with long-term development priorities, particularly in sectors such as connectivity, digital inclusion and economic integration. Their presence as anchor investors can strengthen deal credibility and attract additional institutional capital.
Ratings upgrades reinforce outlook
Ahead of the Eurobond issuance, Fitch Ratings upgraded Liquid’s credit rating, while Moody’s placed the company on review for a potential upgrade.
These actions reflect improved confidence in the company’s financial profile following the refinancing and are likely to support future access to capital markets.
Credit rating movements remain an important signal for investors tracking African issuers, particularly in sectors where capital intensity requires sustained access to funding.
Strategic positioning in Africa’s digital shift
The deal highlights Liquid’s ambition to strengthen its position as a core enabler of Africa’s digital transformation. The company is expanding beyond traditional connectivity into cloud computing, cybersecurity and AI infrastructure — areas expected to drive the next phase of growth across the continent.
Its ongoing infrastructure rollout, including expanded terrestrial fibre routes across East and Southern Africa, reflects a broader strategy to deepen continental integration and digital access.
Group CEO Hardy Pemhiwa said the refinancing marks a strategic milestone, enabling the company to pursue a broader range of digital opportunities.
‘A stronger, more sustainable balance sheet gives Liquid the platform it needs to pursue the full scope of digital transformation opportunities across Africa,’ he said.
Outlook: capital flows returning to Africa
Liquid’s successful fundraising suggests that capital is not retreating from Africa, but becoming more selective. Investors are increasingly backing companies with scale, diversified revenue streams and clear exposure to structural growth sectors such as digital infrastructure.
The combination of oversubscription, DFI participation and ratings upgrades positions this transaction as a bellwether for future African Eurobond issuance and African telecom financing activity.
As global markets stabilise, similar deals could follow — particularly in sectors linked to digital infrastructure, energy transition and logistics — reinforcing Africa’s position as a key frontier for long-term institutional capital.
