Airtel Africa Flaunts Cash Power With Early Repayment Of $505m Notes

Airtel Africa Plc on Tuesday confirmed the completion of the early repayment of its 505 million dollars 5.125 per cent Guaranteed Senior Notes, originally due in March 2023 to investors, using cash balances available at Group level.

The telecommunication and mobile money service company disclosed this in a statement titled, “Senior Notes Repayment’ on the Nigerian Exchange Group Website.

It said that Airtel Africa would save USD26.5million in future interest payments as a result of the early repayment of the notes.

”Settlement includes all outstanding accrued interest up to the Redemption date of 7 March 2022.

“One-off  costs  of  c.$17.6m  for  the  applicable  premium  will  be  recorded  within  finance  costs,  while the group will save an aggregate of c.$26.5m future interest payments from early redemption.

“Since  the  time  of  its Initial Public Offer (IPO)  in  June  2019,  Airtel  Africa  has  successfully  pursued  a  strategy  of strengthening its balance sheet through both deleveraging and reducing US dollar debt exposure.

“Over this period the group has reduced its USD HoldCo debt by c.$1.7bn and improved its leverage ratio  to 1.4x  net debt to underlying EBITDA  at  December 2021.

”Following this early repayment of Senior Notes, the Group has $1bn of bonds remaining at Holdco level, due in May 2024” Airtel Africa said. (NAN)

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