Mr. Francis Letourneau reports
EUROPEAN INVESTMENT BANK APPROVES US$18M FINANCING OF NURAN
European Investment Bank (EIB) formally approved its previously announced senior credit facility of Nuran Wireless Inc. for a total of $18-million (U.S.) on Oct. 5, 2022. The approval is the culmination of extensive project due diligence as well as a number of requirements of EIB, which Nuran management has been working toward over the last several months. This approval is also expected to trigger the release of an additional eight-million-euro senior secured credit facility with a second development finance institution (DFI) for which final approval has already been granted as previously announced on July 12, 2022. On closing, the combined financing is expected to provide Nuran with approximately $26-million (U.S.) in total debt facilities.
The combined proceeds of approximately $26-million (U.S.) are expected to be used for project expenditures relating to the installation of network infrastructure by Nuran and the rollout of up to 242 rural sites in Cameroon and 850 sites in the Democratic Republic of the Congo (DRC).
"We are extremely pleased to receive the final approval of this important financing. Nuran's network-as-a-service (NaaS) strategy was always rooted in securing important levels of debt over equity financing to deploy networks. This approval and the closing of this financing will allow Nuran to accelerate the construction of new sites and will ultimately prove the effectiveness and profitability of bringing mobile connectivity to people worldwide that desperately need to communicate, transact through mobile banking, and access mobile health care and mobile disaster relief, among many other important and essential needs. This financing also confirms the bankability of our NaaS contracts. We are anxious to charge ahead with our rollout plan while we continue to add countries and sites in our quest to reach at least 10,000 sites under contract," stated Francis Letourneau, chief executive officer of Nuran.
Upon closing, proceeds from the loan facility will be used for project expenditures relating to the installation of network infrastructure by Nuran and the rollout of up to 242 rural sites in Cameroon and 850 sites in the DRC. The loan facility is for a term of seven years, including a two-year grace period on repayment of principal and disbursements may be requested up to 36 months following the execution of definitive agreements for the loan facility. The loan facility will be released in three tranches subject to standard security for this type of financing. Interest under the loan facility is due on all disbursed sums and is to be paid semi-annually or annually in arrears on predetermined payments dates. The interest rate is calculated based on a margin over a six-month secured overnight financing rate (SOFR). Drawdown of the loan facility is subject to entering into formal loan agreements as well as compliance with a number of customary closing conditions, including implementing ESG (environmental, social and governance) initiatives.
About Nuran Wireless Inc.
Nuran is a leading rural telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. With its affordable and innovative scalable solutions of 2G, 3G and 4G technologies, Nuran offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably.
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