Airtel Africa Plc has secured a credit facility of $194 million from the International Finance Corporation, (IFC), a subsidiary of the World Bank. This follows a recent $125 million investment from CitiBank signed by Simon O’Hara, Group Company Secretary titled, ‘Airtel Africa’s First Sustainability-Linked Loan Facility.
The new investment amongst other plans, will help the telecommunications company to achieve the following;
1. Connect millions of new subscribers to mobile internet in six African countries – DR Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia.
2. Support universal and affordable broadband access in Africa and the opportunities that come with increased connectivity.
According to a corporate filing sighted by Innovation Village, the credit facility, $194 million, is a series of loans which runs through a repayment period of eight years. The telco giant said the loan provides “a more diversified access to local funding”, and is in line with its debt-increasing strategy.
Airtel Africa is required to submit an environmental and social action plan as part of the agreement, and must adhere to a number of other conditions relating to responsible business practises.
Speaking on the initiative, the company’s CEO Segun Ogunsanya said the facility met with a strategy of taking out localised debt in its operating companies and also “supports our commitment and our ability to meet very strict environmental, social, governance criteria in demonstration of the continued execution of our sustainability journey”.
He also mentioned that Airtel Africa Plc. has future plans to collaborate with the IFC.
The International Finance Corporation’s (IFC) digital strategy in Africa prioritises providing funding to infrastructure-focused businesses, such as independent tower companies and those that provide support for mobile operators, with a particular emphasis on countries that are in “fragile and conflict situations” and those that are considered to have a low standard of living.
Its loan is supported by co-financing from institutional investors through IFC’s Managed Co-Lending Portfolio Program (MCPP), whereas in Zambia, it is supported by the Local Currency Facility of the International Development Association’s (IDA) Private Sector Window.
