Airtel Africa and the International Finance Corporation (IFC) have signed a new $194 million loan facility. IFC will provide six of Airtel Africa’s subsidiaries with local currency loans of around $194 million. The new financing facility is in line with Airtel’s Africa strategy to increase debt within its operating companies.
The financing facility has a tenor of eight years and will be used to support Airtel Africa’s operations and investments in Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia, where the banking landscape and access to local funding remains largely underdeveloped.
Commenting on the development, Segun Ogunsanya, CEO, Airtel Africa, said, “I am very excited to announce the signing of this new facility with IFC. Not only does this facility align with our focus on improving our balance sheet through localising debt within our operating companies, but it also supports our commitment and our ability to meet very strict ESG criteria in demonstration of the continued execution of our sustainability journey. I look forward to working closely with IFC in the coming years and to exploring further opportunities to cooperate together to support the economies and communities where we operate.”
Meanwhile, Sérgio Pimenta, vice president, IFC Africa, said, “The Covid-19 pandemic made mobile connectivity even more urgent for both social and economic development. Helping more people connect to affordable and fast internet networks is a priority for IFC in Africa, especially in the continent’s lower-income countries. The partnership with Airtel Africa will help achieve this.”
As part of IFC’s loan facility, Airtel Africa has committed to comply with the applicable requirements of IFC’s Performance Standards on Social and Environmental Sustainability and has put in place a dedicated environmental and social action plan. This will further strengthen the company’s commitment to transforming lives across the communities in which Airtel operates and will provide clarity on how Airtel can help address inequality and support economic growth across Africa.
