The telecommunications giant did not specifically mention which of its subsidiaries it plans to invest in. However, it operates in 14 African markets and has ongoing projects in several of those markets, including the recent acquisition of additional 60 MHz spectrum for $40 million in Kenya. and in the Democratic Republic of Congo (DRC).
The credit facility will also provide Airtel Africa with the opportunity to save interest rates in return for achieving social impact milestones in areas such as digital inclusion and gender diversity.
The social impact projects will primarily focus on rural areas and women and are aligned with Airtel Africa’s recently launched sustainability strategy.
Airtel Africa’s newly secured $125 million credit facility is part of the telecom operator’s corporate strategy to raise debt in its local operating companies. For this purpose, the facility will be denominated in local currency and US dollars. It will also have a duration of 1 year.
“This facility is consistent with our strategy of leveraging our local operating companies and will include both local currency and US dollar denominated debt. The facility has a term until September 2024 and will be used to support the operations and investments of Airtel Africa in four of its subsidiaries,” the statement said.
Airtel Africa’s business offerings range from telecommunications to mobile money services. It has a combined user base of around 131.6 million.