Telecom and mobile money service provider, Airtel Africa has signed a $125 million revolving credit facility with CitiBank which will be extended through its branch offices/subsidiaries in sub-Saharan Africa.
In line with its strategy to raise debt in Airtel Africa’s local operating companies, the facility will include both local currency and US dollar denominated debt and has a tenor which extends to September 2024.
The facility provides potential interest rate savings in exchange for achieving social impact milestones relating to digital inclusion and gender diversity, with a focus on rural areas and women, and aligning with the Group’s sustainability strategy, launched in October 2021.
The facility, which will be used to support Airtel Africa’s operations and investments in four of its subsidiaries, will further strengthen the telecom company’s commitment to transforming lives across the communities in which it operates.
The deal was executed by Citi’s Indian unit, where Airtel Africa’s parent company, Bharti Airtel is headquartered.
K Balasubramanian, Head of Corporate Banking at CitiBank said: “This is the first performance-indicator based deal executed by Citi India in the area of telecommunications. This sustainability linked loan facility with Airtel Africa is aligned to expand digital inclusion and gender diversity.”
He added that the Airtel Africa transaction will contribute to its stated goal of $1 trillion towards sustainable finance by 2030.
Present in 14 markets across Africa, Airtel Africa is providing solutions to the ever-growing need for data, mobile voice, and mobile money services across sub-Saharan Africa. The limited infrastructure faced by the increasing population and need for everyone to connect seamlessly are the factors driving the company’s goal.