By Chisom Nwatu
Airtel Africa Plc has secured a credit facility of $194 million from the International Finance Corporation (IFC), subsidiary of the World Bank, to offer high speed Internet to millions of Africans
According to a corporate filing, the credit facility, $194 million, is a series of loans which runs through a repayment period of eight years.
This development follows a recent $125 million investment from CitiBank signed by Simon O’Hara, Group Company Secretary titled, ‘Airtel Africa’s First Sustainability-Linked Loan Facility.
However, the new investment, amongst other plans, will help the telecom giant to connect millions of new subscribers to mobile internet in six African countries including DR Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia. It is also aimed at supporting universal and affordable broadband access in Africa and the opportunities that come with increased connectivity.
According to Airtel Africa,the loan provides a more diversified access to local funding, and is in line with its debt-increasing strategy.
Nonetheless, Airtel Africa is required to submit an environmental and social action plan as part of the agreement, and must adhere to a number of other conditions relating to responsible business practices.
Segun Ogunsanya, the company’s CEO, speaking on the initiative, said the facility met with a strategy of taking out localised debt in its operating companies. He added that it supports the company’s commitment and ability to meet very strict environmental, social, governance criteria in demonstration of the continued execution of its sustainability journey.
Ogunsanya also disclosed that Airtel Africa Plc. has future plans to collaborate with the IFC.
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