Operator group Airtel Africa opened a $125 million credit facility with financial services provider Citi, with the company planning to use available cash to support operations in four of its markets.
In a stock market statement, Airtel Africa indicated the debt would be raised in a mixture of US dollars and currencies local to its operations. It is part of a plan to raise debt in its individual operating units.
The company noted its new revolving credit agreement will provide a facility to support “operations and investments” in four of its subsidiaries, though it did not specify which of its 14 markets would benefit.
It explained the credit facility “provides potential interest rate savings in exchange for achieving social impact milestones relating to digital inclusion and gender diversity, with a focus on rural areas and women, and aligning with the group’s sustainability strategy”.
Holding debt in currencies used in its operations is in-line with a strategy outlined by CEO Segun Ogunsanya in its latest financial results call for fiscal Q1 2023 (calendar Q2 2022).
At the time he noted Airtel Africa aimed to to cut the proportion of debt held in “foreign currencies” at group level.Subscribe to our daily newsletter Back