Airtel Africa announced that it has redeemed up to $450 million out of the $1 billion loan it owes to its subsidiary Bharti Airtel International (Netherlands) B.V. (‘BAIN’).
The loan represents intercompany loans owed to its parent company Bharti Airtel International. This also follows a $505m repayment of bonds in March 2022 to its HoldCo. The loan was repaid; one year earlier than their March 2023 redemption date.
Airtel’s decision to reduce its intercompany loans drive by the growing risk exposure to foreign currency debts.
Airtel had an external debt profile of over $1 billion as of March 2022; when it reported its last full-year audited accounts. The company has since its IPO in June 2019, deleveraged its 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 1.3x net debt to underlying EBITDA at 31 March 2022.
-Nairametrics