Raxio Data Centres raises up to $170m sustainability-linked debt facility

The financing package includes USD 110 million from Proparco and the Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company. The financing will enable Raxio to progress with its ambitious roll-out strategy of state-of-the-art, highly reliable and efficient Tier III certified, data centre infrastructure across the continent. Raxio’s current portfolio of sites, built or under development, already give Raxio the widest geographic coverage of any data centre operator in Africa.

Proparco is a tier one development finance institution, and EAIF is a leading infrastructure investor; both share a joint objective to contribute to developing digital infrastructure in Africa - supporting digital transformation across the continent. This sustainability-linked financing package, anchored in ESG principles, promotes energy efficiency, responsible water use practices and female empowerment; all of which align with the core values of the lenders, Raxio and its shareholders. The water and energy use efficiency of Raxio’s sites set a benchmark in Africa and Raxio is proud to see these principles reflected in its financing.

Raxio’s current footprint covers seven countries in Africa, including Uganda, Ethiopia, Mozambique, the Democratic Republic of Congo, Côte d'Ivoire, Angola and Tanzania. Raxio has been backed by investments from Roha and Meridiam and the new funding will be used to accelerate Raxio’s growth in African markets and will support the construction and expansion of existing and new facilities in the region.

Robert Mullins, CEO of Raxio Data Centres, said: "This is a momentous milestone for Raxio, and we are very excited to have found in Proparco and EAIF the ideal long term partners, with common objectives and values. This substantial additional funding package is a resounding endorsement of what we have achieved so far and the soundness of our expansion strategy, and clearly positions Raxio as a leader in delivering world-class data centre infrastructure to markets across Africa. Raxio is committed to building a digital Africa, and this financing gives us the runway we need to continue executing our strategy."

Ariane Ducreux, Head of Energy Digital and Infrastructure at Proparco commented, “Data centres, which concentrate data, services and a powerful aspect of service access, are the new hotspots of the digital economy. We believe digital infrastructure can contribute to the reinforcement of social ties and reducing socio-economic inequalities. This is especially true in sub-Saharan Africa where the lack of neutral and shared data centres undermines the potential of the local digital services markets. Therefore, we are proud to support Raxio’s first development phase of seven carrier-neutral data centres across Africa, together with long-standing partners like EAIF, Meridiam and Roha. With this sustainability-linked loan to Raxio, we also aim at fostering data centres with exemplary environmental sobriety and security levels.”

Commenting on the announcement, Sumit Kanodia, Investment Director at Ninety One, EAIF’s Fund manager, said, “Data centres in Africa enable the growth of the continent's digital economy and unlock innovation for digitally native communities and businesses, providing more affordable access to transformative technologies and services. Our partnership with Raxio responds to the urgent demand for affordable internet connectivity in the region and signifies a joint ambition to narrow the digital divide in several high-potential economies by filling a vital funding gap.”

Raxio benefits from the strong commitment of its shareholders, Roha, the investment firm that founded Raxio, and Meridiam.

Brooks Washington, Partner at Roha, said: " We launched Raxio in 2018 because we saw the significant potential for data centres across Africa. We’re looking forward to Raxio continuing its strong momentum and we are excited to build an African data centre champion.”

“The need for this type of data centre in these countries is clear and Meridiam is proud to be supporting Africa’s digital buildout through Raxio and are excited for what’s to come!”, said Mathieu Peller, Partner at Meridiam.

With this funding, Raxio will continue to deliver private and public sector customers across the African continent best-in-class, reliable, and sustainable data centre solutions. The financing package will support Raxio's strategy of continuing to build Africa’s digital backbone and support the sustainable growth of Africa's digital economy.