IFC considers debt deal for Seacom

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International Finance Corporation is considering a potential senior debt investment in Seacom, a digital infrastructure business that counts Convergence Partners and Sanlam Investments among its stakeholders. If the investment is approved by the DFI’s board, IFC will be investing $100 million as a loan and mobilizing a further $160 million from commercial banks and other parallel lenders. The proposed terms of the debt have not been disclosed.

The debt is part of a $563 million financing plan Seacom is looking to put into action to both refinance its existing short-term debt and diversify its business from subsea cable operations into the enterprise service provider market across Africa. The balance of the $563 million needed to execute the plan is expected to be financed through cash flow and an infusion of fresh equity in the business.

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