Liquid's parent company, Cassava Technologies, secures a fund of $310 million and undergoes reorganization.
Cassava Technologies Secures $90 Million Equity Investment and Debt Refinancing
Cassava Technologies, a global technology leader of African heritage, has announced significant developments in its financial landscape. The company has concluded an equity investment round of $90 million, with participation from the U.S. International Development Finance Corporation (DFC), Finnfund, and Google LLC. Additionally, Cassava has successfully refinanced its South African Rand term loan, securing facilities equivalent to USD 220 million in South African Rands.
These developments are part of Cassava's plan to strengthen its balance sheet, drive sustainable profitable growth, and establish itself as a global technology company of African heritage. The integrated digital solutions platform by Cassava delivers broadband, data centers, cloud, AI, cybersecurity, and payment services across over 30 markets in Africa, the Middle East, India, and Latin America.
Hardy Pemhiwa, President and Group CEO of Cassava, stated that these achievements strengthen the company's financial position and are a testament to the vision of the founder and Group Chairman, Strive Masiyiwa, and the dedication of the teams across the Group. The equity investment, debt refinancing, and reorganization represent a pivotal milestone that is expected to unlock immense value and catalyze the further expansion of Cassava's digital infrastructure and services.
Liquid Intelligent Technologies (Liquid), a business of Cassava Technologies, has also benefited from these financial restructurings. The company has strengthened its financial and strategic position, allowing it to focus on sustainable growth and innovation across Africa. Recent initiatives such as the strategic partnership with DropByDrop to deliver smart water management solutions in Kenya are evidence of Liquid's continued investment in technology solutions.
The refinancing facilities are being provided by Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and International Finance Corporation (IFC). Liquid has also maintained a strong commitment to sustainability and governance under its One Cassava strategy, which promotes profitable and sustainable growth aligned with global standards.
Moreover, Cassava Technologies has completed its legal reorganization, creating an integrated digital solutions platform. This reorganization is expected to help with the company's previous credit downgrade. The equity injection and debt refinancing were provided by DFC, Finnfund, Google LLC, Standard Bank, Rand Merchant Bank, Nedbank, and IFC.
In conclusion, the equity infusion, debt refinancing, and reorganization have positioned Liquid Intelligent Technologies to sustain growth, improve operational and financial resilience, and advance technology-driven projects across Africa, embedded within the broader strategic and sustainability framework of its parent, Cassava Technologies. These developments are a significant step towards realizing the vision of a digitally connected future that leaves no African behind.
[1] DropByDrop: www.dropbydrop.co [2] One Cassava Strategy: www.cassavatechnologies.com/one-cassava-strategy [3] 2024 Fibre TechCelerate Programme: www.liquid.africa/fibre-techcelerate [4] Economic Inclusion: www.liquid.africa/economic-inclusion [5] Cassava Technologies: www.cassavatechnologies.com
- The equity investment of $90 million, secured by Cassava Technologies from DFC, Finnfund, and Google LLC, will be utilized to establish Cassava as a global technology company, providing broadband, data centers, cloud, AI, cybersecurity, and payment services across various markets, further expanding its digital infrastructure and services.
- The refinancing facilities, equivalent to USD 220 million in South African Rands, secured by Cassava Technologies, will not only strengthen the financial position of Liquid Intelligent Technologies but also enable them to focus on sustainable growth and innovation in technology, as demonstrated by their strategic partnership with DropByDrop for smart water management solutions in Kenya, within the One Cassava strategy framework.
