Investec, as mandated lead arranger, has provided Vox, a market-leading end-to-end integrated ICT and infrastructure provider, with access to debt facilities to fund their fibre rollout plans.
Investec was the mandated lead arranger on the Vox deal who structured the debt package, managed the entire process and brought in Rand Merchant Bank and Standard Bank as fellow lenders.
“The roll-out of fibre via our subsidiary Frogfoot, is key to helping revolutionise the lives of local families and businesses, by providing a fast, affordable and reliable platform for communication. However, the fibre telecommunications game is a competitive one and the right funding partner for growth is paramount,” Jacques du Toit, CEO at Vox says.
“In fact, as work from home becomes the norm, so has the need for fast, affordable, and reliable internet connectivity. This additional Capex allows us to continue to provide communities with fast and reliable fibre to both homes and businesses as demand continues to grow.”
Frogfoot has doubled the size of its network, significantly expanding its footprint to smaller towns across the country – enabled by a focus on the provisioning of high-speed national long-distance services.
The company is driven by its commitment to an open-access wholesale network and has grown its ISP network by 30%. This includes working with local ISPs in towns to enable users to get access to high-speed connectivity. The company has been performing almost 4 000 installations per month, despite challenging pandemic conditions.
Laverne Chetty, Investec Specialised Finance Consultant, indicates that when Fibre to the home (FTTH) was launched, higher LSM areas with high housing density in metropolitan areas were the ones naturally targeted first.
“We are now at the point where fast-growing companies such as Vox and Frogfoot are expanding beyond these areas, into new outlying regions where both homes and businesses still need fibre. With the additional funding we have provided, Vox has the capability to implement the next stage of its growth strategy which includes taking fibre to those areas eager to benefit from high-speed internet access.”
