Airtel Africa Plc has signed a $125 million revolving credit facility with Citibank’s Sub-Saharan Africa subsidiaries.
Airtel Africa plans to invest the credit facility in four of its subsidiaries, according to a corporate disclosure signed by Simon O’Hara, Group Company Secretary, and titled ‘Airtel Africa’s First Sustainability-Linked Loan Facility.’
The telecommunications giant did not specify which of its subsidiaries it intends to invest in. However, it operates in 14 African markets and has ongoing projects in several of them, including the recent acquisition of an additional 60 MHz spectrum in Kenya and the Democratic Republic of the Congo for $40 million (DRC).
Airtel Africa also stated that the facility will include both local currency and US dollar-denominated debt and is in line with the company’s strategy to raise debt in its local operating companies.
The credit facility will also allow Airtel Africa to save interest in exchange for meeting social impact milestones such as digital inclusion and gender diversity.
The social impact projects will primarily benefit rural areas and women, and they will be consistent with Airtel Africa’s recently launched sustainability strategy.
“This facility is in line with our strategy to raise debt in our local operating companies and will include both local currency and US dollar-denominated debt. The facility has a tenor up to September 2024 and will be used to support Airtel Africa’s operations and investments in four of its subsidiaries,” according to the disclosure.
Airtel Africa’s business offerings range from telecommunications to mobile money services. It has a combined user base of about 131.6 million.
The company’s latest earnings report for its Q1 period ended June 30 showed that revenue grew by 13.0% to $1.2 billion, even as profit after tax surged 25.3% to $178 million.
