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Convergence Partners secures R400m loan

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 12 May 2014

Andile Ngcaba's Convergence Partners, which manages investments in ICT projects, says it has secured a R400 million long-term funding facility from Nedbank Capital for its investment portfolio arm, Convergence Partners Investments (CPI).

The funding will be used by CPI to fund the next phase of its investment lifecycle, primarily its commitment to the recently launched Convergence Partners Communications Infrastructure Fund (CPCIF).

CPCIF, which reached its first close of $145 million in November 2013, is the second investment vehicle that Convergence Partners manages, focusing on ICT infrastructure related companies and projects on the African continent.

The fund was launched last November and aims to invest in communications infrastructure and related services and technologies across sub-Saharan Africa.

"This new facility will support the critical investment activities of our recently launched ICT infrastructure fund, and will allow us to continue the successful relationship we have with Nedbank Capital - both at a Convergence Partners level and through working together in many of our underlying ventures," said Brandon Doyle, CEO of Convergence Partners.

"We will continue to focus strongly on initiatives that increase the availability of communications, broadband services and new technology offerings to African people."

Nedbank Capital and Convergence Partners have a longstanding relationship, with Nedbank Capital having previously participated in the original capitalisation of CPI, through a R300 million preference share facility.

This facility was used to fund CPI's investment activities over the past seven years and has since been settled.

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