Teraco concludes $166.6m funding round for data centre in South Africa
Teraco Data Environments Proprietary Limited has finalised a $166.6 million (R2.5 billion) loan financing transaction.
This follows the company’s announcement in November 2020 regarding its construction of a new 38MW hyperscale data centre in Ekurhuleni, east of Johannesburg, South Africa.
Teraco said it will use the funds raised together with internally generated cash to finance the build and plan on continuing its investment in the region’s digital infrastructure.
Teraco’s newly appointed Chief Financial Officer, Samuel Erwin, said that the shareholders and lenders of Teraco have a long-term vision for Africa’s digital transformation and support its continued investment in data centre infrastructure to serve the sub-Saharan African market.
“Absa has continued along the growth path with Teraco. Their understanding of our business model and funding requirements and ability to offer tailored funding solutions to suit our needs has 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 says that this funding round, and continued investments in data centre construction, align with Teraco’s support of the South African Government’s investment drive and Teraco’s 2020 commitment to invest billions of Rands into South Africa’s digital infrastructure.
The funding 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 enterprises with a direct private connection to all leading cloud providers in the most latency efficient, secure and resilient manner possible,” said the company.
“Enterprises can deploy their private, public and hybrid cloud strategies on Platform Teraco, which allows for complete freedom of choice from a cloud provider perspective, as well as significantly reducing the time and cost for enterprises to access these cloud platforms.”