LONDON, UK: Airtel Africa, a number one supplier of telecommunications and mobile cash services, with a presence in 14 countries across Africa, today announces the signing of a brand new $194m facility with International Finance Corporation (‘IFC’), a sister organisation of the World Bank and a member of the World Bank Group.
The new financing facility is in line with Airtel’s Africa technique to extend debt inside its working companies. IFC’s digital technique in Africa is aimed at enabling ubiquitous, reliable, and affordable connectivity.
The facility has a tenor of eight years and can be used to support Airtel Africa’s operations and investments in Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia, offering a extra diversified entry to native funding.
As a half of IFC’s mortgage facility, Airtel Africa has dedicated to adjust to the relevant necessities of IFC Performance Standards on Social and Environmental Sustainability and has put in place a devoted Environmental and Social Action plan. This will additional underpin the Group’s dedication to transforming lives throughout the communities in which Airtel operates and supply readability on how the Group can assist address inequality and support financial growth in these communities.
Airtel Africa’s sustainability technique was launched in October 2021, and set out the Group’s ambitious sustainability targets and long-term goals. It is supported by a framework of 4 sustainability pillars: Our Business, Our People, Our Community, and Our Environment. The Group’s sustainability targets are aligned to the United Nations Sustainable Development goals and are designed to ship an actual and positive impact. Airtel Africa’s inaugural Sustainability Report was published in October 2022, detailing the Group’s efficiency to date and the progress being made towards achieving the set targets and goals.
Segun Ogunsanya, chief executive officer, said: “I am very excited to announce the signing of this new facility with IFC. Not solely does it align with our focus on improving our balance sheet through localising debt inside our OpCos, however as we make progress on our sustainability journey it additionally helps our commitments and ability to meet strong ESG criteria. I look ahead to working closely with IFC inside the approaching years as we discover additional alternatives to support the economies and communities the place we operate.”
Sérgio Pimenta, IFC Vice President for Africa, said: “The COVID-19 pandemic has made mobile connectivity much extra pressing for each social and financial development. Helping extra people join to affordable and quick web networks is a precedence for IFC in Africa, particularly inside the continent’s lower-income countries. The partnership with Airtel Africa will assist obtain this.”
IFC’s mortgage is supported by co-financing from institutional investors through IFC’s Managed Co-Lending Portfolio Program (MCPP). IFC’s mortgage in Zambia is supported by the Local Currency Facility
of the International Development Association’s (IDA) Private Sector Window.