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NuRAN Wireless Inc., a leading provider of mobile and broadband wireless infrastructure solutions, has announced the execution of a two-year term loan facility agreement valued at US $5 million with the Facility for Energy Inclusion (FEI), a fund managed by Cygnum Capital. This follows the final Investment Committee approval on February 29, 2024.
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The Loan Facility, entered into by NuRAN Wireless (Africa) Holding (“NuRAN Africa”), a wholly owned subsidiary of the Company, aims to finance the construction of renewable energy assets for mobile network infrastructure. This initiative is designed to support existing and new Network as a Service (“NaaS”) agreements, primarily in Cameroon and the Democratic Republic of Congo (DRC).
The senior secured Loan Facility will enable NuRAN to deploy more than 500 new sites. The Company plans to use the loan proceeds, combined with cash generated from operating sites, to cover all material and construction costs for these new sites. The loan drawdowns are contingent upon customary conditions, including evidence of new sites being funded and operational. The amounts are secured against the assets of the Company’s subsidiaries.
“This marks a significant milestone in NuRAN’s financing strategy for its NaaS operations and is the result of extensive efforts by both FEI’s and NuRAN’s teams in completing the final due diligence and debt structuring. We are grateful to Cygnum Capital and FEI for their support in our commitment to connect and empower the unconnected in Africa,” said Francis Letourneau, CEO of NuRAN Wireless Inc. “This facility will enable us to execute our construction plan for 2024 and achieve major milestones by the end of the calendar year.”
Carmen de Castro, Managing Director and Fund Lead at Cygnum Capital, stated, “Providing this facility to NuRAN Africa marks another noteworthy achievement for the Fund’s leading role to support the energy transition in the telecommunication industry in Africa where renewable energy is critical to bring fundamental services to underserved populations. The combination of innovative financing and world-class technical expertise will fast-track the expansion of mobile networks to rural areas in Africa.”
FEI was advised by Trinity International (legal) and IBIS Environmental Social Consulting Europe (E&S).
