The Facility for Energy Inclusion (“FEI”) and NuRAN Wireless (Africa)Holding (“NuRAN Africa”) have signed a US$ 5 million 2-year debt facility to finance the expansion of rural mobile networks in Cameroon and the Democratic Republic of the Congo.
NuRAN Africa is a wholly owned subsidiary of NuRAN Wireless Inc. (“NuRAN” or the “Company”) (CSE: NUR) (OTC: NRRWF) (FSE: 1RN), a leading supplier of mobile and broadband wireless infrastructure solutions.
On April 26th, 2024, FEI and NuRAN Africa signed a bridge facility for the purpose of financing the construction of renewable energy assets for mobile network infrastructure in respect of existing and new Network as a Service (“NaaS”) agreements with the intention of accelerating the build of NaaS sites primarily in Cameroon and DRC. This senior secured bridge facility is intended to allow NuRAN Africa to deploy more than 500 new NaaS sites. Combined with cash generated from operating sites, the Company intends to use the proceeds to cover all material and construction costs of the new sites.
“Providing this facility to NuRAN Africa marks another noteworthy achievement for the Fund’s leading role in supporting energy transition in the telecommunications 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” stated Carmen de Castro, Managing Director and Fund Lead of FEI.
“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 of 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.”.
FEI is managed by Cygnum Capital and was advised by Trinity International (legal) and IBIS Environmental Social Consulting Europe (E&S) on this transaction.
About Cygnum Capital
Cygnum Capital Group is an investment bank and asset manager, operating across frontier and emerging markets. Cygnum Capital Asset Management manages five pioneering funds: four debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund(“OGEF”) which supports companies in off-grid energy such as SHS and small-medium mini-grids, (iii) FEI which support companies that provide a range of renewable energy solutions such as medium-large mini- grids, C&I and IPP with a maximum capacity of 25 MW, and (iv) AfricaGoGreen Fund (“AGG”) which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency and promote economic development in high impact target sectors; and a VC private equity fund (v) E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & applications, low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 835 million in assets under management with investments in 27 African countries.
About the Facility for Energy Inclusion
FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial and captive power projects. FEI was set up by the African Development Bank (“AfDB”) as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund and loan commitments from the Austrian Development Bank and the International Finance Corporation (IFC). The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.
The transaction was supported by FEI’s Project Preparation Facility (“PPF”), funded by the Global Environment Facility, through the AfDB. The PPF provides returnable grant funding for last-mile processes crucial to closing transactions and to fund due diligence and preparatory costs incurred in establishing innovative structures or transactions that FEI seeks to lend to.
About NuRAN Wireless
NuRAN Wireless is a leading rural telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. With its affordable and innovative scalable solutions of 2G, 3G, and 4G technologies, NuRAN Wireless offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably. “Bridging the Digital Divide, One Connection at a Time.”
For further information about NuRANWireless: www.nuranwireless.com
