Airtel Africa on Wednesday announced that it had signed a new $500 million loan facility with a group of relationship banks to partially refinance the Group's €750million Euro-denominated bond (c.$880million) due 20 May 2021.
The Group disclosed the information via a statement signed by its Group Company Secretary, Simon O'Hara.
The banks are Bank of America, BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered Bank and two Indian relationship banks, Axis Bank and Kotak Mahindra Bank.
"...the balance of the Euro-denominated bond will be repaid with existing Group cash to reduce gross debt and associated interest costs. The new loan facility further strengthens the core liquidity of the Group." Airtel Africa
The company's secretary also gave an insight into how the loan will be repaid.
He explained that the Telco 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.