London, UK, Oct 24 – Airtel Africa has secured 1.25 billion dollars capital injection from six investors through a primary equity issuance.
The proceeds will be used to reduce Airtel Africa’s existing debt of 5 billion dollars and to grow its African operations.
The transaction will not involve any sale of shares by existing shareholders.
The Bharti Airtel subsidiary, with operations in nine Africa countries, has also announced an Initial Public Offering (IPO) “on a recognized International Stock Exchange” and use the proceeds primarily for further reduction of debt.
Bharti Airtel Africa Chief Executive Raghunath Mandava said the transaction will help the operator boost its capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money.
“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 Mandava