Finance

Airtel Africa secured $2.7 billion additional banking loans since May 2019

Airtel Africa secured $2.7 billion additional banking loans since May 2019
Monday, 24 June 2019 17:15

Airtel Africa announced it has recently signed various loan agreements totaling about $2.7 billion. The company is in the process of listing on the London Stock Exchange and is also considering listing on the Nigerian Stock Exchange.

The largest financial facility was arranged in May 2019 with Standard Chartered Bank group for a total of $2 billion. During the period, some of the company’s subsidiaries negotiated a $425 million syndicated loan with Citigroup, HSBC Bank and South Africa's Standard Bank.

Under this move, Airtel Uganda obtained a debt restructuring with the South African group Absa Bank for $119 million due at the end of December 2019, which will now be repayable in January 2021. Similarly, in mid-June 2019, Airtel Nigeria secured a N50 billion ($138.6 million) facility from Zenith Bank. And BAIN, Airtel Africa's majority shareholder holding company, negotiated a $75 million loan with JP Morgan Chase's London branch.

These new injections are expected to relieve a drowning Airtel Africa. At the end of March 2019, the company’s debt burden fell sharply, and now represented only three times its EBITDA (Earnings before interest, taxes, depreciation, and amortization), compared with a bit over nine times three years earlier.

Airtel Africa did not provide clear information on what the monies will be directed to, but it sees the digital sector in sub-Saharan Africa as an opportunity and expresses ambition to take advantage of it.

It should also be recalled that over the next 9 months, Airtel Africa and its subsidiaries will have to repay up to $900 million, if the debt restructuring obtained for its Ugandan subsidiary is excluded. Also, a part of the resources mobilized, through its capital opening, will be used to reduce this debt.

 Idriss Linge

On the same topic
• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector could grow to $20 bln annually and create 20 mln...
• BRICS plans a guarantee fund to reduce political and financial risks in developing countries.• The fund will be managed by the New Development Bank...
BEAC granted Afreximbank the first-ever foreign access to the CEMAC public securities market. Cameroon raised $359.3 million via a...
(EBID) - The Board of Directors of the ECOWAS Bank for Investment and Development (EBID) held its 92nd Ordinary Session on June 30, 2025. The Board...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
03

• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...

Burkina Faso: Vista Group Acquires Controlling Stake in Société Générale
04

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
05

• Kenyan President William Ruto signs strategic partnership with UK Prime Minister Keir Starmer to b...

William Ruto in London: New Agreement Aims to Double Kenya-UK Trade by 2030
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.