Airtel Africa Plc has announced the signing of a $125 million revolving credit facility with Citibank’s subsidiaries in Sub-Saharan Africa.
According to a corporate disclosure filed with the Nigerian Exchange and seen by Business Insider Africa, Airtel Africa plans to invest the credit facility in four of its subsidiaries.
The telecom giant did not specifically mention which of its subsidiaries it plans to invest in. However, it operates in 14 African markets and has ongoing projects across several of these markets, including the recent acquisition of an additional 60 MHz spectrum for $40 million in Kenya and in the Democratic Republic of Congo (DRC).
The credit facility will also provide Airtel Africa with the opportunity to save interest rate in exchange for achieving social impact milestones in such areas as digital inclusion and gender diversity.
The social impact projects will focus mainly on rural areas and women and are aligned with Airtel Africa’s recently launched sustainability strategy.
Airtel Africa’s newly secured $125 million credit facility is part of the telco’s corporate strategy to raise debt in its local operating companies. To this effect, the facility will come in both local currencies and US dollars. It will also have a 1-year tenor.
“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,” the statement said.
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.