Airtel Africa Repays $550 Million Bond

Bharti Airtel International (Netherlands) B.V., Airtel Africa subsidiary, has repaid in full the 5.35% Guaranteed Senior Notes maturing on May 20, 2024.

Airtel Africa Debt Repayment

The company stated that $550 million Airtel Africa bond repayment was made exclusively out of cash reserves at the holding company (HoldCo).

It also emphasized that the repayment is a continuation of its strategy to reduce external foreign debt.

During Airtel Africa’s IPO in June 2019, the Group had $2,719 million of external debt at the HoldCo level. This led to exposure to currency fluctuations. Also, led to the reliance on upstreaming funds to cover both interest costs and the principal repayment.

Bharti Airtel’s Africa operation also took a hit due to the Naira devaluation. Airtel’s net profit had plunged 31%. Consequently, Airtel net debt rose from 6.8% sequentially to $3.5 billion.

Airtel Africa Bond Affected By Currency Fluctuations

The company’s financial performance in currency is affected despite growth in service revenues. The revenue measured in constant revenue reveals an increase of 20.9%.

Airtel CEO, Olusegun Ogunsanya, spoke on combating the adverse effects of currency fluctuations and revenue growth. He highlighted that the consistent deployment of the company’s ‘Win with’ strategy has accelerated constant currency revenue growth. He also emphasized that it has reduced the impact of currency headwinds, and demonstrated the resilience of Airtel’s affordable offerings despite pressures.

The CEO emphasized the importance of investment in distribution and technology in facilitating growth. He noted that these investments are fundamental to Airtel’s performance. It enables the company to support and sustain growth through key features: enhanced distribution networks and necessary technological advancements. These key features ensure the company maintains a competitive edge.

Conclusion

Moreover, the telecom firm closed its trading day on Monday, May 20, 2024, with a 13.9% increase in its price valuation. Airtel Africa, started the year with a share price of N1,887 and closed at N2,150 per share.

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