Airtel Africa Plc. has today announced that the group made an early repayment of its $505 million guaranteed senior note for its operational use which is expected to mature next year.
The group made this known in a statement filed with the Nigerian Exchange, saying the $505 million borrowed at 5.125% guaranteed senior note that is originally due in March has now been settled with cash balances.
“Further to the announcement of 4 February 2022, Airtel Africa…has completed the early repayment of its about $505 million 5.125% Guaranteed Senior Notes, originally due in March 2023, using cash balances available at Group level”.
It said the settlement includes all outstanding accrued interest up to the Redemption date of 7 March 2022.
One-off costs of about $17.6 million for the applicable premium will be recorded within finance costs, while the Group will save an aggregate of about $26.5 million future interest payments from early redemption, it added.
The group stated that since the time of the IPO in June 2019, Airtel Africa has successfully pursued a strategy of strengthening its balance sheet through both deleveraging and reducing US dollar debt exposure.
Over this period the Group has reduced its USD HoldCo debt by about $1.7 billion and improved its leverage ratio to 1.4x net debt to underlying earnings before interest tax depreciation and amortisation (EBITDA) in December 2021.
Following this early repayment of Senior Notes, the Group has $1 billion of bonds remaining at HoldCo level, due in May 2024, Airtel Africa said.
