Airtel Secures N50bn Credit Facility

• Airtel Secures N50bn Credit Facility

Airtel Africa, Nigeria’s operation unit, has secured loan facility from a number of Nigerian banks.

The telecommunication company said it has signed N50 billion loan agreement with banks in Nigeria.

“Airtel Nigeria entered into a bank facility agreement for an amount of N50bn, which is available for a period of 180 days from the acceptance of the offer and has a tenure of five years inclusive of a twenty-four-month moratorium on the principal amount,” the company stated.

The company working on getting listed on the Nigerian Stock Exchange soon didn’t disclose the purpose of the loan facility but stated that the telecom industry is capital-intensive and requires substantial amounts to scale.

Airtel, capital expenditures were $630 million, $411 million and $395 million in 2019, 2018 and 2017, respectively.

According to the telecom company, the expenditures were spent on the acquisition of new networks and the improvement of existing networks.

The company, which announced its plans to list on the Nigerian Stock Exchange in May, said it would only sell shares to qualified institutional investors and high-net worth investors in Nigeria as stipulated in Rule 321 of the Securities and Exchange Commission Rules.

A total of 501.125 million and 716.406 million shares would be offered to Nigerians, according to the company.

Barclays Securities Nigeria and Quantum Zenith Securities Investments Limited are the two issuing houses named for the offer.

The company is expected to list simultaneously on the London Stock Exchange.