Raxio DC (IFC-48537)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Angola
  • Congo, Democratic Republic of
  • Ethiopia
  • Ivory Coast
  • Mozambique
  • Tanzania
  • Uganda
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Raxio Group
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 293.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 16, 2024

Disclosed by Bank Apr 17, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, IFC investment will be up to US$100 million for the phased development of a portfolio of ten “metro – edge” carrier-neutral DCs in with a total capacity of 13.5MW and total cost of US$293 million. Current target markets include Uganda, Ethiopia, Tanzania, Mozambique, Angola, Ivory Coast, and the Democratic Republic of Congo (DRC). The project is expected to be supported by the IDA20 Private Sector Window Blended Finance Facility as described in the Blended Finance section.

The Company is building and developing data centers in frontier African countries including Uganda, Ethiopia, Tanzania, Mozambique, Angola, Ivory Coast, and the Democratic Republic of Congo (DRC).

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B project according to IFC's Policy on E&S Sustainability (2012) because the project will have limited adverse E&S impacts that are few, site-specific, largely reversible, and readily addressed through existing mitigation measures.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is estimated at US$293 million, to be financed with US$88 million in equity, US$165 million in senior debt and US$40 million in subordinated debt. IFC investment comprised of (i) a Senior Loan of up to US$60 million; (ii) and a Subordinated Loan of up to US$40 million.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Raxio (or the “Company”) was established in 2018 to address latent demand for DC infrastructure across underserved African markets by building and operating a platform of data centers (“DCs”). Raxio’s DCs are designed to accommodate a variety of customer needs ranging from small and medium enterprises, Hyperscalers, Internet Service Providers, Telcos, Financial services, Regional Carriers, Content Delivery Networks, Cloud Services Providers, and Mobile Network Operators. Raxio Group is owned 48.5% by The Roha Group, 46.5% by Meridiam through the Meridiam Infrastructure Africa Fund FIPS, and 5% by a Foundation to provide the equivalent of stock options to Company’s the employees. The Borrower is Raxio Finance BV, a private company with limited liability incorporated and registered under the laws of the Netherlands, and that is wholly-owned by Raxio Group.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Raxio Group Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Raxio Group
Bas Schuurman
CFO
+31 (0)6 1582 5606
bas.schuurman@raxiogroup.com
Sarphatistraat 370, 1018GW – Amsterdam, NL
www.raxiogroup.com

Local access for project documentation:

Contact Person: Robert Mullins

Company Name: Raxio Group

Address: DIFC Gate Village Building 7 – Ground Floor – Dubai, UAE.

Email: robert@raxiogroup.com Telephone: +31 10 440 1154

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works