Airtel Africa signs $125 million sustainability loan deal with Citi Bank

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BY BAMIDELE FAMOOFO

Uba Group

In a bid to make its Sub-Saharan Africa businesses sustainable, Airtel Africa, one of Africa’s leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announced the signing of a $125 million revolving credit facility with Citi through its branch offices/subsidiaries in sub-Saharan Africa.

This facility, according to Airtel, one of the two telecom companies listed in the Nigerian stock market, is in line with its strategy to raise debt in its local operating companies which will include both local currency and US dollar denominated debt.

Simon O’ Hara, Group Company Secretary, Airtel Africa, said 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 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 launched in October 2021. The facility further strengthens the Group’s commitment to transforming lives across the communities in which we operate,” he said.

The company grew its half year revenue for the period ending June 30, 2022 by 13.04 percent to $1.26 billion, from $1.11 billion in the same period of 2021. Profit after tax stood at $178 million, up 25.4 percent compared with $142 million recorded as at June 30, 2021. Basic Earnings per Share increased by 33.3 percent to 4.4 Cents, indicating that shareholders will have reasons to celebrate with better dividend by the end of the financial 2022.