IHS Holdings Limited (IHS Towers) has announced its taking out a $600 million loan over the next three years.

However the company only expects to use $370 million of this, with the loan carrying an interest rate of 3.75 percent.

In a press release, the company says the money will be used to repay the $280m bridge facility that is set to mature in February 2023, plus part of a $76m Nigerian credit facility that is amortizing and due to mature in September 2024.

This loan deal is called a bullet-term loan, which will see IHS making just interest payments during the three years, with a final payment of all money owed at the end.

IHS is paying the loan at an interest of 3.75 percent plus a three-month term SOFR (secured overnight financing rate) and CAS (credit adjustment spread).

Founded in 2021, IHS Towers operates over 39,000 towers across its 11 markets, including Brazil, Cameroon, Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Peru, Rwanda, South Africa, and Zambia.

Remaining proceeds from the loan will initially be left undrawn, says the company, and can be used for general corporate purposes.

Absa, Citi, Rand Merchant Bank, and Standard Chartered Bank were the bookrunner initial mandated lead arrangers of this transaction, according to IHS.

In September 2022, IHS Towers also successfully extended the termination date of its $270 million revolving credit facility, for a period of two years after its original termination date, to March 30, 2025.

In June of this year, IHS entered the South African market following the acquisition of over 5,701 cellular and radiocommunications towers from MTN in South Africa in a $412m deal.

As part of the deal, IHS will provide power management services to MTN on approximately 13,000 sites across Africa, including the 5,701 towers acquired in the June deal.