IFC Supports Teraco’s Expansion for Improved Business Data Services in Africa
Johannesburg, South Africa - IFC, a member of the World Bank Group, today announced an investment in Teraco Data Environments that will help the company expand its data center storage and hosting facilities in South Africa and into other parts of Africa, improving information technology infrastructure in the region.
IFC’s investment is part of a broader strategy to support innovative information and communication technology businesses to improve productivity and growth in Africa. Teraco’s existing Johannesburg co-location data centre will be expanded threefold and two new co-location facilities will be opened in Durban and Cape Town. Teraco’s longer-term strategy calls for expansion in Africa outside South Africa.
IFC will provide 35 million South African rand (ZAR, equivalent to approximately $5 million) in equity-type finance, alongside an additional ZAR 80 million in senior debt provided by the Development Bank of Southern Africa to support Teraco’s further growth. Teraco’s current investors, Treacle Private Equity, Pentangle Group and Marlow Capital, participated in financing of the company for a total package of ZAR 158 million. Marlow Capital acted as financial advisor on the financing.
Tim Parsonson, Group Chief Executive of Teraco, said, "These two quality finance providers, IFC and the DBSA, will help us with our next phase of exciting growth.”
Saleem Karimjee, IFC Senior Manager, said, “Data centers are becoming a critical part of the technological infrastructure needed for growing companies to innovate and compete globally. IFC is enthusiastic about Teraco’s pioneering plans in the sector, especially plans to expand across the African region. Our investment in Teraco continues our commitment to helping African businesses harness new technology and approaches to managing information.”
Lucy Chege, DBSA Divisional Executive, Investment Banking, said, “Teraco signifies a positive change towards addressing the effective use of resources and improving efficiencies in the telecommunications sector. This is in line with the Development Bank of Southern Africa’s objective to support businesses within the telecommunications sector that will have a positive development impact and promote streamlined functioning of the sector.”
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
About Teraco Data Environments
Founded in 2007, Teraco is Africa’s only vendor neutral data centre colocation operator. Teraco builds and operates its colocation data centres for the most demanding IT infrastructure requirements including the increased power and cooling demands of today’s high density cloud server computing environments backed by a 99.999% uptime guarantee. Client equipment and data centre environmental parameters are monitored 24x7 by Teraco’s Control Centre, staffed by specialists versed in all aspects of IT and colocation facility management. Teraco has grown to include two state-of-the-art colocation data centres in Johannesburg and Cape Town and is also home to NAPAfrica, a neutral layer two internet peering exchange (IX) point.
The Development Bank of Southern Africa’s vision is prosperous and integrated region progressively free of poverty and dependency.The DBSA advances development impact in the region by expanding access to development finance and effectively integrating and implementing sustainable development solutions. Visit www.dbsa.org.
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