Airtel Africa Raises Ksh 126Bn For Debt Reduction and Business Growth

Airtel Africa Ltd, a subsidiary of India’s Bharti Airtel Ltd, has raised close to KSh126 billion from Singtel, Warburg Pincus, Temasek, SoftBank Group International, and others through a primary equity issuance to lower its existing debt and grow its business ahead of an intended Initial Public Offering.
“This primary equity issuance clearly underlines the confidence of leading global investors in Airtel Africa’s successful business strategy and its potential to sustain growth and profitability,” said Raghunath Mandava, MD and CEO, Africa, Bharti Airtel.
“Airtel Africa subsequently intends an Initial Public Offering (IPO) and use the proceeds primarily for further reduction of debt,” said the statement from the company.
Singtel which holds a 39.5% stake in Airtel said its investment reflects the long-term growth potential of Africa.
“Arthur Lang, CEO of Singtel’s International Group, said, “Our investment into Airtel Africa reflects our confidence in the long-term growth potential of Africa with its young and growing population. For many of Airtel Africa’s customers, the mobile phone is the key enabler for digital and financial inclusion. As Airtel continues to execute on its transformation strategy to become a leader in data and mobile money in Africa, we believe it is in a strong position to benefit from increasing smartphone penetration and mobile money adoption.”
According to the GSMA 2017 Mobile Economy report, Africa is projected to be the world’s second-fastest growing economic zone and the fastest growing mobile market with unique mobile subscribers expected to increase from 420 million at the end of 2016 to more than half a billion by 2020.