One of Africa’s largest telecom groups Airtel Group just announced the signing of a $125 million revolving credit facility with investment banking group Citigroup Inc through its branch offices/subsidiaries in sub-Saharan Africa.
What does Airtel need the money for?
Airtel says the credit facility aligns with its plan to raise debt in its local operating companies. The facility will include both local currency and US dollar-denominated debt and will be used to finance Airtel’s operations and investments in four of its subsidiaries.
“This 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 [Airtel’s] sustainability strategy,” the company said in a press release.
The credit facility will expire in September 2024.
This news comes 15 months after the group announced that it had signed a $500 million loan facility with Citibank and other banks like Bank of America, BNP Paribas, HSBC, J.P. Morgan, Standard Chartered Bank, Axis Bank and Kotak Mahindra Bank.