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HomeTop NewsAirtel secures $500 mln 4-year loan from Citibank, HSBC, others

Airtel secures $500 mln 4-year loan from Citibank, HSBC, others

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…To partly pay off €750 mln debt due May 20

By Samuel Bankole

Airtel Africa on Wednesday announced that it has successfully signed a new $500 million loan facility from a consortium of eight relationship banks, which include Citibank and HSBC.

The new committed facility consists of a combination of a revolving credit facility and term loans with tenor of up to 4 years.

The telecom firm in a regulatory filing with Nigerian Exchange Group, said the facility will be used to partially refinance the Group’s €750 million denominated bond (c.$880m) due 20 May 2021.

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The balance of the Euro-denominated bond will be
repaid with existing Group cash to reduce gross debt and associated interest costs.

It said that the new loan facility further strengthens the core liquidity of the Group. It also has prepayment flexibilities that will allow the Group to optimise the efficiency of its capital structure with the free cash flows and cash receipts anticipated over the next 12 months following the recent announcements related to tower sales and mobile money minority investments.

Airtel said the banks which participated in the facility include a diverse group of existing global relationship banks, Bank of America, BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered Bank and two Indian relationship banks, Axis Bank and Kotak Mahindra Bank.

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