February 02, 2021 | Abigail Opiah
Teraco Data Environments Proprietary Limited has completed a $ 166.6 million (Rand 2.5 billion) loan financing transaction.
This follows the company’s announcement in November 2020 regarding its construction of a new 38MW hyperscale data center in Ekurhuleni, east of Johannesburg, South Africa.
Teraco said it will use the funds raised with internally generated cash to finance construction and plans to continue investing in the region’s digital infrastructure.
Teraco’s new CFO, Samuel Erwin, said Teraco shareholders and lenders have a long-term vision for Africa’s digital transformation and support its continued investment in data center infrastructure to serve the sub-Saharan African market.
“Absa continued to grow with Teraco. Their understanding of our business model and financing needs and their ability to provide tailored financing solutions to meet our needs have contributed to Teraco’s success, ”added Erwin.
Erwin joined the company in 2020 and leads a team responsible for providing debt financing to Teraco clients across the African continent.
He said this round of funding and continued investments in building data centers aligns with Teraco’s support for the South African government’s investment campaign and Teraco’s 2020 commitment to invest in billion rand in South Africa’s digital infrastructure.
The financing transaction, led by Absa, includes several large institutions that have joined the lending group, with a view to creating long-term partnerships that will support Teraco’s future expansion plans.
“Platform Teraco provides businesses with a direct private connection to all major cloud providers in the most efficient, secure, and latency-resilient manner possible,” the company said.
“Businesses can deploy their private, public and hybrid cloud strategies on the Teraco platform, allowing complete freedom of choice from a cloud provider’s perspective, while dramatically reducing time and cost for businesses. to access these cloud platforms.