Airtel, IFC sign $194 million facility to connect millions of Africans to fast internet

The International Finance Corporation (IFC 0 and Airtel Africa Plc have agreed to a $194 million credit facility.

According to a corporate disclosure obtained by RNN, the new funding arrangement is in line with Airtel Africa’s plan to raise debt levels at its operational firms.

The eight-year-term facility will be utilized to assist the telecom company’s operations and investments in several of the African markets in which it is active. The markets are in the Republic of Congo, Zambia, Madagascar, Kenya, the Democratic Republic of the Congo, and Niger.

Airtel Africa Chief Executive Officer Segun Ogunsanya offered his thoughts on the situation, saying that the $194 million credit facility is consistent with the company’s commitment to upholding its environmental, social, and governance (ESG) obligations. He said:

“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 localizing 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.”

Sérgio Pimenta, vice president of the IFC for Africa, also offered his thoughts on the agreement, stating that it will enable more people to access high-speed internet at reasonable prices. He stated:

“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.”

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According to Airtel Africa, the company has established a specific Environmental and Social Action plan and pledged to adhere to all relevant standards of the IFC’s Performance Standards on Social and Environmental Sustainability.

The development is anticipated to strengthen the Group’s dedication to improving lives in all the communities where Airtel works and shed light on how the Group can combat inequality and promote economic development in these areas.

The ambitious sustainability ambitions and long-term objectives of the Group were outlined in Airtel Africa’s sustainability plan, which was introduced in October 2021. Four sustainability pillars—Our Business, Our People, Our Community, and Our Environment—support it.

The Group claims that its sustainability targets are in line with the Sustainable Development Goals of the United Nations and are created to have an actual, beneficial impact.