IFC, a member of the World Bank Group, has announced a commitment of $200m to help IHS Nigeria expand its tower portfolio and create mobile phone infrastructure that will improve mobile call service quality for operators and consumers in Nigeria.

Eme Essien-Lore, IFC Nigeria country manager, said: “IFC’s telecom sector strategy supports increased coverage and access to services across Nigeria. The IHS Nigeria expansion project will contribute to inclusive growth and job creation that promotes growth in Nigeria."

IFC’s financing is part of a $600m debt package raised by IHS from international and local lenders.

The transaction mobilizes significant resources from other investors, including a large Chinese bank.

It includes $50m for IFC’s own account, $112.5m from ICBC, the Industrial and Commercial Bank of China, and $37.5m through the IFC Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio.

"With support from ICBC and other lenders, IHS is expanding its lender base for network development and increasing financing between Africa and China," added Essien-Lore.

IHS will use the funds to acquire approximately 2,200 tower sites from Etisalat Nigeria and to construct additional Build-to-Suit towers.

The expansion will improve network congestion, reduce operating costs, and increase service coverage for the mobile operators.

IHS Nigeria, which was founded in 2001, is headquartered in Lagos and is a full service telecoms infrastructure company, providing collocation, management and build-to-suit services to Mobile Network Operators and other broadband service providers.

Issam Darwish, CEO and Executive Vice Chairman of IHS Holding, said: “The IHS mission is to provide telecommunications infrastructure to mobile network operators in Africa that enables the widest, most efficient and reliable networks, supporting the economic development of the region. We are constantly developing new, efficient and effective technologies and rolling out passive network to make that happen."

"Partnering with IFC has helped us access funding from a broader range of sources that will help us pursue our goal of building the infrastructure needed for Nigeria’s long-term growth,” he said.