IHS Towers, a leading independent owner, operator, and developer of wireless communication infrastructure, has secured a $439 million loan to refinance its debt and support its global operations. The new financing comes just two months after the company considered selling off its businesses in Rwanda and Zambia, with plans to use part of the proceeds to reduce its debt burden.
The loan provides IHS with immediate access to funds, allowing the company to defer significant repayment until the end of the five-year term. This gives IHS the flexibility to focus on its operations in the short term while preparing for a substantial repayment down the line. By refinancing early, IHS aims to lock in better terms, potentially lowering its interest costs and extending its repayment timeline. However, the deal is described as “leverage neutral,” meaning it will not alter the company’s overall debt-to-equity ratio.
IHS, which operates over 40,000 towers across Africa, Latin America, and the Middle East, confirmed that the financing is not tied to any specific region. A company spokesperson stated, “This is a group-level financing and therefore has no direct impact on any particular market.”
The financing comes at a time of significant operational challenges for IHS. In August 2024, the company laid off 100 employees, primarily senior staff and network surveillance team members, following a massive $1.9 billion loss in 2023. This loss was largely attributed to the devaluation of the Nigerian naira and foreign exchange (FX) losses. The layoffs were part of IHS’s broader strategy to cut costs in response to economic challenges and performance issues.
Despite these hurdles, IHS’s subsidiary in Nigeria has secured a key partnership renewal. MTN Nigeria renegotiated and extended its tower lease agreement with IHS, covering over 13,500 tenancy contracts until December 2032. This renewal also includes the extension of 1,430 MTN Nigeria tenancies, reflecting confidence in IHS’s long-term infrastructure capabilities.
While the $439 million loan offers IHS a financial cushion and an opportunity to stabilize its operations, the company still faces the challenge of managing its debt and ensuring its growth strategy remains on track across multiple regions.
