Airtel Africa Plc and the International Finance Corporation (IFC) have signed a $194 million credit facility as part of their collaborative initiative aimed at deepening Internet access in African countries.
The deal indicated that the new financing facility aligns with its strategy to meet its commitments and improve its balance sheet through localizing debt within its operating companies in its countries of operations.
Information on the pact shows that the facility has a tenor of eight years and will be used to support the telecom firm’s operations and investments in Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia markets.
Speaking on the financing pact, Airtel Africa Chief Executive Officer, Olusegun Ogunsanya, said the $194 million credit facility aligned with the company’s determination to meet its Environmental, Social, and Governance (ESG) commitments in the countries where it operates.
He expatiated: “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”, the telecom expert added.
Also commenting, the IFC’s Vice President for Africa, Sérgio Pimenta, also expressed his optimism that the deal would help more people to connect to affordable high-speed internet.
Pimenta explained: “The COVID-19 pandemic has made mobile connectivity even more urgent for both social and economic development. 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.”
Under its ESG commitments, Airtel Africa maintained it was committed to complying with the applicable requirements of IFC’s Performance Standards on Social and Environmental Sustainability.
The leading telecom operator maintained that it had put in place a dedicated Environmental and Social Action Plan to ensure strict compliance with the requirements.
