Airtel Group, one of Africa’s largest telecom groups, recently announced the signing of a $125 million revolving credit facility with investment banking group Citigroup Inc via its sub-Saharan African branch offices/subsidiaries.
What does Airtel require the funds for?
The credit facility, according to Airtel, is in line with its plan to raise debt in its local operating companies. The facility will include debt in both local currency and US dollars and will be used to fund Airtel’s operations as well as investments in four of its subsidiaries.
“This facility offers potential interest rate savings in exchange for meeting social impact milestones related to digital inclusion and gender diversity, with a focus on rural areas and women, and aligning with [Airtel’s] sustainability strategy,” the company said in a press release.
The credit facility will come to an end in September 2024.
This announcement comes 15 months after the group announced a $500 million loan facility with Citibank and other banks including Bank of America, BNP Paribas, HSBC, J.P. Morgan, Standard Chartered Bank, Axis Bank, and Kotak Mahindra Bank.