Airtel Gets $194m Loan From IFC, Exempts Nigeria From Investment Plans

Airtel has received a new $194m facility with the International Finance Corporation, a member of the World Bank Group.

But the Group which operates in 14 countries will only invest the proceeds in Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia.

The telecom company said on Tuesday in a regulatory filing that the new financing facility is in line with Airtel’s Africa strategy to increase debt within its operating companies.

The IFC promotes economic development through private sector.

Airtel’s biggest market is Nigeria with 58.67 million subscribers, but there are no plans to invest part of the proceeds in the country, the regulatory filing suggests.

The Group said it “has committed to comply with the applicable requirements of IFC Performance Standards on Social and Environmental Sustainability and has put in place a dedicated Environmental and Social Action plan.

“This will further underpin the Group’s commitment to transforming lives across the communities in which Airtel operates and provide clarity on how the Group can help address inequality and support economic growth in these communities.”

Airtel launched a sustainability strategy in October 2021 to provide a structured approach for its engagement with society and involves programmes that will be rolled out in all operations across Africa.

Segun Ogunsanya, Chief Executive Officer, said “I am very excited to announce the signing of this new facility with IFC. Not only does it align with our focus on improving our balance sheet through localising debt within our OpCos, but as we make progress on our sustainability journey it also supports our commitments and ability to meet strong ESG criteria.

“I look forward to working closely with IFC in the coming years as we explore further opportunities to support the economies and communities where we operate.”

Sérgio Pimenta, IFC Vice President for Africa said, “Helping more people connect to affordable and fast internet networks is a priority for IFC in Africa, especially in the continent’s lower-income countries. The partnership with Airtel Africa will help achieve this.”