Airtel Africa has secured a $125 million revolving loan facility from Citi to support operations in its subsidiaries.
Simon O’Hara, Airtel Africa’s secretary, disclosed this on Wednesday in a corporate filing on the Nigerian Exchange Limited (NGX).
“Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces the signing of a $125m revolving credit facility with Citi through its branch offices/subsidiaries in sub-Saharan Africa,” Airtel Africa said in the statement.
A revolving loan facility is a credit issued by financial institutions that allows borrowers to withdraw, repay, and withdraw again.
“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,” it said.
The telco said the facility has a tenor up to September 2024 and would 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 statement said.
“The facility further strengthens the group’s commitment to transforming lives across the communities in which we operate,” it said.