SMILE NETWORKS IN HISTORICAL CAPITAL RAISING OF N73 billion ($365)TO UPGRADE NETWORK.

The parent company of Smile Communications Nigeria Limited, Smile Telecoms Holdings Ltd, which owns and operates mobile wireless fourth generation long term evolution (4G LTE) broadband networks in the 800MHz band in Nigeria, Tanzania and Uganda, has raised N73 billion ($365 million) of debt and equity financing to accelerate the rollout of its networks. The funding will be used to expand Smile’s existing 4G LTE networks and services such that by the end of 2015, Smile will offer clear voice services, in addition to mobile broadband and will have national coverage comparable to that of the largest 3G network in each of its current countries of operation. Smile, which also plans to launch its broadband network in the Democratic Republic of Congo (DRC) early in 2016, said that the funding comprises of $50 million of equity raised from the public investment corporation (PIC) on behalf of the Government Employees Pension Fund and $315 million multi-tranche, multi-jurisdictional debt facility from financial institutions. Participating banks in the deal include the Africa Export-Import Bank, the Development Bank of Southern Africa, Diamond Bank Plc, Ecobank Nigeria, the Industrial Development Corporation of South Africa Limited, and Standard Chartered Bank. Smile Telecom shareholders now comprise of a Saudi Arabian-based company, Al Nahla Group, which is the majority shareholder. Others are a pan-Africa investment vehicle, Renven Investment Holdings, which represents majority Nigerian investors; Verene, representing Smile senior management and social entrepreneurs from South Africa; a Saudi Arabian-based investment company, Telecom Investments; an alternative asset management firm, Capital works; the PIC; and Smile employees. Under the terms, the proceeds will be used to accelerate national network roll-out, including equipment and services provided by Alcatel Lucent and Ericsson, a full Multiprotocol Label Switching (MPLS) network, a London Point of Presence and expanded international backhaul services to fund operational expenditure and working capital. Smile’s objective is to become the broadband provider of choice for super-fast data and clear voice in each of its markets and to provide the over 300 million potential customers in its four countries of operation with an efficient, reliable, quality tool to accelerate development and wealth creation. The chief executive officer, Smile, Irene Charnley, said, “Now that we are fully funded to deliver national coverage of unrivalled super-fast internet access and clear voice services, our priority is to ensure that our customers experience and benefit from the power of high speed mobile broadband, compared to the narrow band services available to date, including how to effectively manage the superior experience in terms of data consumption.” “Nigeria is one of the most dynamic markets in the world and mobile broadband will continue to play a crucial role in transformation and development of the country. Smile 4G LTE broadband internet in Nigeria represents a considerable investment, and reflects Smile’s confidence in and commitment to the country’s development,” he said. Leadership