Airtel Africa has announced the effective execution of a US$500M new loan facility agreement with a consortium of relationship banks.
Bank of America, BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered Bank, and two Indian partnership banks, Axis Bank and Kotak Mahindra Bank, are the facilitating banks.
The loan facility consists of a lines of credit and short-term loans with a tenor of up to four years, allowing the Group to optimize its capital structure performance with free cash flows and cash receipts.
In a statement, the board said, “The new loan facility further enhances the group’s core liquidity.”
The facility will be used to partly refinance the Group’s 750 million Euro-denominated bond (approximately US$880N) that is due on May 20, 2021.
To minimize gross debt and related interest costs, the remaining Euro-denominated bond will be repaid with existing Group cash.