Helios Towers recently made history with its $250 million debut Eurobond issuance, marking a significant milestone in Africa’s corporate finance landscape. The transaction set multiple records, including being the first Eurobond issued by a non-financial and non-commodities company from Sub-Saharan Africa and achieving the lowest coupon rate for a debut Nigerian corporate issuance. The proposed credit was a unique opportunity for international real money investors to gain exposure to a first-ever non-financial, Nigeria-only corporation.
The proceeds from the offer will be used to refinance existing, expensive senior and subordinated debt, extend the company’s debt maturity profile, optimize its capital structure, and establish a liquid benchmark for future debt issuances.
The landmark transaction established a series of firsts in the capital markets such as the first non-commodity corporate issuer from Sub-Saharan Africa, the First Sub-Saharan African telecom (excluding South Africa) to issue a Eurobond, Lowest-ever coupon for an inaugural Nigerian corporate issuance, the First-ever CEEMEA (Central & Eastern Europe, Middle East, and Africa) telecom towers bond, First US dollar-denominated African telecoms deal since December 2007, and First corporate rating for a Nigerian-domiciled company.
KPMG Nigeria in partnership with its London office acted as auditors on this transaction. The Nigerian team was led by the Audit Partner, Goodluck Obi, and Audit manager, Dunni Okegbemila, with support from associates Adeyinka Ogunoiki and Kolade Ogunsola. The auditors played a critical role in ensuring the credibility and financial integrity of the transaction. According to Goodluck Obi, “We are pleased to have played a key role in this historic transaction and bringing a major African telecommunications infrastructure provider to the debt market. Our responsibilities included reviewing historical financial data, assessing the accuracy of projected financial information in the prospectus, and ensuring compliance with regulatory requirements.” He also noted the contribution of the team, most especially Kolade Ogunsola, who was responsible for assessing the credibility of the bond offering, by reviewing the company’s regulatory compliance, and internal controls to ensure the financial data used in the issuance was accurate and free from fraud or misstatement.
The transaction’s success was underscored by its full subscription within the agreed timeline, reinforcing investor confidence in the company and the broader Sub-Saharan African corporate debt market. This historic issuance paved the way for future corporate bond transactions in the region, setting a benchmark for Nigerian and African corporate issuers seeking access to international capital markets.