NuRAN Wireless Inc. has finalised a two-year term loan facility agreement, referred to as the “Loan Facility,” for a principal amount of USD 5 million with the Facility for Energy Inclusion (FEI), managed by Cygnum Capital, to fund the construction of renewable energy assets for mobile network infrastructure. This initiative aims to support existing and new Network as a Service (“NaaS”) agreements, with a focus on expediting the establishment of NaaS sites, primarily in Cameroon and the Democratic Republic of the Congo (DRC). This agreement follows the announcement of the final Investment Committee approval on February 29th, 2024. 

The loan facility will allow NuRAN to deploy more than 500 new sites. In addition, alongside cash generated from operating sites, the company plans to utilise the proceeds to cover these new sites’ significant material and construction costs. The drawdowns on the loan are contingent upon customary conditions for a loan, including evidence of funding and operational status of new sites, with the amounts secured against the assets of the Company’s subsidiaries.

“This marks a significant milestone in NuRAN’s financing strategy for its NaaS operations. It results from extensive efforts by both FEI’s and NuRAN’s teams to complete the final due diligence and debt structuring. We are grateful to Cygnum Capital and FEI for their support and commitment to connecting and empowering the unconnected in Africa,” said Francis Letourneau, CEO of NuRAN Wireless Inc. “This facility will enable us to execute our construction plan for 2024 and achieve major milestones by the end of the calendar year,” stated Francis Letourneau, CEO of NuRAN Wireless Inc.

“Providing this facility to NuRAN Africa marks another noteworthy achievement for the Fund’s leading role in supporting the energy transition in the telecommunication industry in Africa, where renewable energy is critical to providing fundamental services to underserved populations. The combination of innovative financing and world-class technical expertise will fast-track the expansion of mobile networks to rural areas in Africa,” stated Carmen de Castro, Managing Director and Fund Lead at Cygnum Capital.