Raxio announces $170 million sustainability-linked debt facility

Raxio has announced that it has secured up to $170 million in sustainability-linked debt, as part of a multiple-tranche sustainability-linked debt facility. Through Proparco and the Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, the financing, at its core, is reportedly designed to promote responsible water use, energy efficiency, and female empowerment. Further, the interest repayments are tied to pre-agreed water and energy targets, although specifics were not shared.

According to the company, it will use the financing to ‘accelerate’ Raxio’s roll-out across Africa and support the construction and expansion of existing and new facilities in the region.

Speaking about the deal, Robert Mullins, CEO of Raxio Data Centres, called the move a “momentous milestone” for Raxio: “This substantial additional funding package is a resounding endorsement of what we have achieved so far and the soundness of our expansion strategy, and clearly positions Raxio as a leader in delivering world-class data centre infrastructure to markets across Africa. Raxio is committed to building a digital Africa, and this financing gives us the runway we need to continue executing our strategy.”

Meanwhile, Ariane Ducreux, Head of Energy Digital and Infrastructure at Proparco, shared that the company believes that digital infrastructure can contribute to reinforcing "social ties and reducing socio-economic inequalities." Ducreux said that this is especially true in sub-Saharan Africa where the lack of neutral and shared data centres "undermines the potential of the local digital services markets."

"Therefore, we are proud to support Raxio’s first development phase of seven carrier-neutral data centres across Africa, together with long-standing partners like EAIF, Meridiam and Roha. With this sustainability-linked loan to Raxio, we also aim at fostering data centres with exemplary environmental sobriety and security levels,” Ducreux added.

Sumit Kanodia, Investment Director at Ninety One, EAIF’s Fund manager, echoed similar sentiments: “Data centres in Africa enable the growth of the continent’s digital economy and unlock innovation for digitally native communities and businesses, providing more affordable access to transformative technologies and services."

"Our partnership with Raxio responds to the urgent demand for affordable internet connectivity in the region and signifies a joint ambition to narrow the digital divide in several high-potential economies by filling a vital funding gap," Kanodia said.