Further to the announcement of 4 February 2022, Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, yesterday confirms that it has completed the early repayment of its c.$505 million, its 5.125 per cent Guaranteed Senior Notes, originally due in March 2023, using cash balances available at group level.
According to the notification singed by Simon O’Hara Group Company Secretary presented to the Nigerian Exchange settlement includes all outstanding accrued interest up to the Redemption date of 7 March 2022.
However, the notification showed a one-off cost of c.$17.6 million for the applicable premium which will be recorded within finance costs, while the Group will save an aggregate of c.$26.5 million future interest payments from early redemption.
Since the time of the IPO in June 2019, the company said it has successfully pursued a strategy of strengthening its balance sheet through both deleveraging and reducing US dollar debt exposure.
Over this period it said the Group has reduced its USD HoldCo debt by c.$1.7 billion 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 $1 billion of bonds remaining at HoldCo level, due in May 2024.
It would be recalled that the company in on February 4, 2022, announces that its 100 per cent owned subsidiary, Bharti Airtel International (Netherlands) B.V., has elected to redeem all of its 5.125 per cent Guaranteed Senior Notes due 2023 (‘Notes’), aggregating to US$504,915,000, on 7 March 2022 (‘Redemption Date’), ahead of its maturity in March 2023.
In addition to the outstanding principal, it said the redemption price will include settlement of all outstanding accrued interest up to the Redemption Date, plus the applicable premium in accordance with the terms of the Notes.
This early redemption will be made out of Group cash reserves and aligns with the continuation of our pursuit of a reduction of external foreign currency debt at Group level.
