Citi to provide $125 million revolving credit line to Airtel Africa

11 Aug 2022 , 04:03 PM

The American banking giant Citi has agreed to provide a 125 million USD revolving credit to Airtel Africa. The company, which operates in 14 African nations through its telecom and mobile money businesses, said that the facility entails borrowing in both local currencies and US dollars.

The facility will support Airtel Africa's operations and investments in four of its subsidiaries, the telecom said in a statement. Its term runs until September 2024. According to the statement, it offers interest rate discounts in exchange for reaching social impact milestones related to digital inclusion and gender diversity, with a concentration on rural regions and women.

The credit facility will be made available through Citi's branch offices or subsidiaries in sub-Saharan Africa, the country where Bharti Airtel, the parent company of Airtel Africa, is based, according to the company. 

"This is the first performance-indicator-based agreement that Citi India has completed in the telecoms sector. Increasing digital inclusiveness and gender diversity is a goal of this sustainability-linked credit facility with Airtel Africa "K Balasubramanian, director of corporate banking for Citi in South Asia, stated.

According to him, the lender is still looking for possibilities in India and other areas, and the Airtel Africa acquisition will help it reach its stated aim of investing USD 1 trillion in sustainable financing by 2030.