The company’s sponsor and lead equity investor is Helios Investors, L.P. (“the Fund”) operated by Helios Investment Partners (“Helios”). Helios is a private equity investment firm that is focused on Sub-Saharan Africa. The firm was founded and is managed by Africans who are former Principals of Texas Pacific Group. Helios’ approach combines private equity investment skills with a high degree of hands-on operational involvement in portfolio companies. In addition to the Fund, Helios operates other related investment entities, aggregating more than $575 million in capital commitments. The firm also managed the $110 million Modern Africa Fund on behalf of a range of investors which include the U.S. government''s Overseas Private Investment Corporation and several leading U.S. corporations.

The project cost is estimated to be $380 million equivalent. IFC intends to provide $50 million senior debt in the form of an IFC A Loan and $50 million in equity and mezzanine debt, for IFC’s own account. In addition, IFC will seek to mobilize up to $150 million through a combination of IFC B Loan, for the account of commercial banks, and parallel loans for the account of other DFIs.

100.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	100.0
Equity

* These investment figures are indicative

Helios Towers Nigeria Limited is headquartered in Lagos, Nigeria. The company’s infrastructure and operations spreads across Nigeria.

Expand mobile telephony access: With the construction of additional tower sites, existing mobile operators will be able to expand the reach of their services both in terms of geography and capacity. In addition, since Helios Towers is not affiliated with any operator, and as its business model is predicated on sharing and collocation, the benefits of expanded access through Helios Towers will also be available to new market entrants. Collocation reduces the incremental cost of expanding service for all carriers thereby allowing them to service remote and economically less developed areas where ARPU and usage will be lower.

Increase competition: The presence of Helios Towers in the Nigerian market will allow smaller and newer wireless operators to benefit from reduced barriers to entry as they will have access to leased tower facilities rather than having to build their own.

Expand access to other ICT technologies: Helios Towers will be building a tower network that is capable of supporting not only mobile cellular networks, but also wireless broadband and backhaul networks, thereby improving the penetration of these technologies.

Contribute to mitigating environmental impact and Climate Change: This project will provide a cost effective opportunity to telecommunication operators to reduce their carbon emission footprint by sharing infrastructure. A significant benefit of sharing tower infrastructure arises from the material, energy and emissions savings that ensue from building only one tower instead of three or four. The most immediate impact is on the visual environment, where the removal of two or three unnecessary towers creates an immediate visual benefit. The savings in resources are more significant, as only one-third or one quarter of the steel, concrete and other building materials are necessary for a shared tower. Finally, in areas of uncertain power supply like Nigeria, the ability to use only one back-up power generator to serve an area where there would formerly be 3 or 4 back-up power generators for separate towers, results in immediate and continuing reduction of harmful emissions.

IFC will uniquely contribute to the project in the following ways:

Provision of Long-Term Funding: IFC’s involvement ensures the long-term funding in the volume and tenor needed for a project of this scale in a frontier market such as Nigeria.

Mobilization: Given IFC’s knowledge of the telecommunications sector and its investment experience in Africa, IFC will help mobilize additional funding from commercial banks and other DFIs in a B Loan syndication and parallel loans of up to $150 million.

Infrastructure Development: IFC’s involvement will support the expansion of a network which will increase telecommunications usage nation-wide, reducing the cost of service, improving the efficiency of the business sector and increasing connectivity within Nigeria.

Catalytic Effect: The deterioration of international capital markets in recent months has increased the challenge for mid-sized firms, such as Helios Towers, to obtain needed financing. IFC’s participation in the proposed investment will send a positive signal to the market about the continued health of the Company and the Nigerian telecom sector.
Implement and Maintain Good Social and Environmental Standards: IFC’s will work closely with the company to develop environmental and social (“E&S”) policies that address critical issues including the use of external security agencies and procedures for site development.

The key issues associated with the project are environmental, health, safety, and social management; construction of towers; labor and working conditions (including employee and contractor occupational health and safety); pollution prevention and abatement; and biodiversity conservation. This has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

The principal Performance Standards (PSs) to be applied to this investment are PS1: Social and Environmental Assessment and Management Systems; PS2: Labor and Working Conditions; and PS3: Pollution Prevention and Abatement. A condition of IFC’s investment will be that Helios Towers'' operations shall ensure that all relevant social and environmental risks and impacts are considered and managed as appropriate. Specific information about how those risks and impacts will be addressed by Helios Towers is summarized in the Environmental and Social Review Summary (ESRS) for the project.