Airline Africa and the International Financial Society (“IFC”) have signed a new $194 million facility with a World Bank sister organization and a member of the World Bank Group.
The new financing facility is in line with AirtelAfrica’s strategy to increase debt within its operating companies, the telco said on Tuesday.
IFC’s loan is backed by co-financing from institutional investors through IFC’s Managed Co-Lending Portfolio Program (MCPP). The loan from IFC in Zambia is supported by the Local Currency Facility of the Private Sector Window of the International Development Association (IDA).
The facility has an eight-year term and will be used to support Airtel Africa’s operations and investments in the Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia, providing more diversified access to local financing.
As part of the IFC loan facility, Airtel Africa has committed to meeting the applicable requirements of the IFC Performance Standards for Social and Environmental Sustainability and has established a dedicated Environmental and Social Action Plan.
Airtel and Meta said the companies will work together to increase OpenRAN operational efficiency and facilitate energy management and automation in the radio network using advanced analytics and AI/ML models.
Defeat Ogunsanyachief executive officer, said: “Not only does it align with our focus on improving our balance sheet by locating debt within our OpCos, but as we make progress on our sustainability journey, it also supports our commitments and ability to meet stringent ESG criteria.”
Sérgio Pimenta, IFC Vice President for Africa, said: “The COVID-19 pandemic has made mobile connectivity even more urgent for both social and economic development. Helping more people connect to affordable and high-speed internet networks is a priority for IFC in Africa, especially in the lower-income countries of the continent. The partnership with Airtel Africa will help achieve this.”