Mobile Internet Holdings bags $75m financing for Indonesian broadband

Mobile Internet Holdings bags $75m financing for Indonesian broadband

Mobile Internet Holdings BV (MIH) is set to receive around $75 million in growth financing from a group of investors led by Gemcorp Capital.

A subsidiary of Net1 International Holdings, MIH specialises in delivering broadband connectivity to underserved populations in emerging markets.

The debt financing facility is committed collectively with around $48m by Gemcorp Capital, $15m by InfraCo Asia Investments (‘InfraCo Asia’) – a company of the Private Infrastructure Development Group, and $12.5m by OP Finnfund Global Impact Fund I. In addition, the shareholder support by Rasmussengruppen and Sampoerna has unlocked further capital to support Net1’s growth.

The facility will support MIH’s on-going investment into Net1 Indonesia, which is developing a mobile broadband network in rural parts of Indonesia, bringing internet connectivity to underserviced areas in the fourth most populous country in the world.

Only 3% of Indonesia’s population have access to fixed broadband connectivity. The company aims to provide connectivity to over 300,000 households over the next five years. New or improved access to broadband connections is expected to bridge the digital divide across work and education opportunities between rural and urban populations in Indonesia, as well as improve access to the latest healthcare advice pertaining to the pandemic.

Net1 Indonesia is the only operator in Indonesia licensed to operate the 450MHz spectrum. This spectrum is significantly more efficient in broadcasting signals over long distances compared with the traditional higher frequency spectrums.

JD Fouchard, Chairman of Net1 International, said: “Our aim is to ultimately transform the lives of hundreds of thousands of people in rural areas where limited or no broadband access is currently available.”

Atanas Bostandjiev, CEO at Gemcorp, said: "Given the ongoing COVID-19 pandemic, the importance of Net1’s mission to bring broadband to rural communities has become more crucial than ever.”

Tuomas Virtala, CEO of OP Asset Management, said: “Bringing internet connectivity to underserved people in rural Indonesia…also provides internet access to many schools and hospitals in the rural areas, and the COVID-19 crisis has highlighted the importance of online schooling that would not be otherwise possible.”

Net1 International has a highly experienced management team with a track record of rolling out and managing LTE 450MHz networks, a technology well suited to address under-served broadband markets, such as the semi-rural and rural regions in Indonesia.

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