Liquid Intelligent Technologies Secures Oversubscribed $300M Bond at 10.75%

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Liquid Intelligent Technologies, the pan-African telecoms and digital infrastructure provider formerly known as Liquid Telecom, has priced a $300 million senior secured notes offering that drew demand more than 2.5 times the amount on offer. The new US-dollar denominated notes, due in 2031, carry a fixed coupon of 10.75% and are expected to close on April 14, 2026.

The transaction forms a key part of the company’s broader refinancing strategy. Proceeds will help redeem its existing $620 million senior secured notes maturing in September 2026, alongside related fees and costs. It follows an earlier round of debt restructuring in February 2026, when Liquid repaid its rand-denominated term loan and USD revolving credit facility while securing $410 million in fresh credit facilities from a syndicate of commercial and development finance lenders. Its parent, Cassava Technologies, also injected $195 million in equity at that time.

Anchor orders came from development finance institutions, including DEG-Deutsche Investitions-und Entwicklungsgesellschaft mbH, signalling continued confidence from DFIs in Liquid’s regional role. Group CEO Hardy Pemhiwa welcomed the outcome, noting the “strong support and significant demand from international investors” amid global economic uncertainty.

The oversubscription arrives after a period of financial pressure for the group. In late 2025, rating agencies expressed concerns over upcoming debt maturities and leverage, with Fitch placing the company’s IDR on rating watch positive ahead of this issuance and Moody’s highlighting refinancing risks. The successful pricing, combined with the earlier facilities and equity injection, reduces near-term repayment pressure and shrinks the overall debt quantum being refinanced.

Liquid operates one of Africa’s largest fibre networks, spanning more than a dozen countries with a focus on wholesale connectivity, enterprise services, cloud, and data centre offerings. Majority-owned by Strive Masiyiwa’s Econet Global through Cassava Technologies, the company has positioned itself as critical infrastructure for digital growth across the continent, from carrier services to enterprise solutions in markets where reliable connectivity remains uneven.

Yet the operating environment has been challenging. Currency depreciation in several African markets, slowing revenue growth in legacy voice segments, and high financing costs have weighed on metrics. The 10.75% coupon on the new notes reflects current market pricing for the credit, notably higher than the 5.5% achieved on its previous international bond in 2021, when oversubscription reached more than five times amid different global conditions.

This deal is not a growth-raising exercise but a defensive refinancing move. By tapping the bond market again and securing DFI participation, Liquid is buying time and stability to execute on its fibre and digital infrastructure strategy. The company has signalled ambitions in cloud, cybersecurity, and data services, segments where demand is rising but capital intensity remains high.

For Africa’s telecoms infrastructure sector, the transaction offers mixed signals. On one hand, the ability to attract international capital and DFI support for a major player underscores underlying appetite for connectivity assets in emerging markets. On the other, the elevated coupon and the context of recent downgrades highlight how fragile access to affordable capital can be when macro headwinds, currency volatility, inflation, and global rate environments, collide with high leverage.

With the September 2026 maturity now addressed through a combination of new bonds, term loans, and equity, Liquid enters the next phase with a more extended debt profile. Execution will now shift to operational delivery: stabilising revenues, controlling costs, and demonstrating that the fibre backbone can drive sustainable growth in higher-margin digital services.

The bond’s strong demand may ease immediate concerns, but in a continent where digital infrastructure is both essential and expensive to build, the real test lies in whether this refinancing translates into tangible network expansion and improved financial resilience over the coming years. For now, Liquid has cleared a significant hurdle, one that many African infrastructure groups continue to face.