Airtel Africa announced Friday that it had settled nearly half of its $1 billion guaranteed senior notes due to mature in May 2024, just a fortnight after issuing a redemption call to investors.
According to reports, the bond was initially priced at 5.35 percent.
However, the parent company of the telecommunications powerhouse, Indian-based Bharti Airtel Limited, is executing plans to reduce its debt at the group level, one of which is the decision to terminate $450 million of the bond’s value early.
The money to pay off the debt came from the group’s coffers.
When Airtel Africa first announced the move in June through its Dutch subsidiary BAIN, it planned a cash tender.
“The original redemption cap of $300m, as mentioned in the release of 22 June, was increased on 6 July 2022 as BAIN, in its sole discretion, decided to achieve a larger debt reduction through the use of cash resources,” Airtel said in the document posted on the Nigerian Exchange website.
The $450 million figure represents the total principal amount considered for the transaction, which has repaid $462.6 million to bondholders who submitted bids, including accrued interest and compensation for redeeming that portion of the debt ahead of schedule.
In a previous disclosure, Airtel Africa stated that “there is an early tender deadline of 5 July 2022 for noteholders wishing to tender their notes for preferential early tender consideration; otherwise, the tender offer will expire on 19 July 2022, unless amended or extended by BAIN at its sole discretion.”
On Friday, Airtel shares closed at N1,732.20 per unit on Custom Street in Lagos, with no movement. Since the beginning of July, the stock has been in a holding pattern.