Airtel Africa has announced that it has signed a $125 million revolving credit facility with investment banking group, Citigroup Inc, via its sub-Saharan Africa branch offices.
According to Airtel, “this facility is in line with our strategy to raise debt in our local operating companies.”
So, the credit facility will include both local currency debt and debt denominated in US dollars, and it will be used to fund Airtel's operations and investments in four of its subsidiaries.
Recall that the telco recently acquired 60 MHz spectrum in Kenya and the Democratic Republic of the Congo for $40 million.
Moreover, the credit facility offers potential interest rate savings to meet social impact milestones related to digital inclusion and gender diversity, focusing on rural areas and women and aligning with Airtel's sustainability strategy.
The telco claims that the credit facility reinforces its commitment to improving people's lives in the communities in which they operate.
Credit facilities are an alternative way to obtain corporate loans because they help businesses achieve their goals much faster while saving them the stress of reapplication.
Essentially, a credit facility allows a company to take out an umbrella loan to generate capital over a long period
In this case, this facility enables Airtel Africa to borrow money over a longer period instead of reapplying until September 2024.
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