Prior to their 2024 maturity, $450 million in senior notes were settled by Airtel Africa Plc.
The Group claimed that the early redemption was funded by cash reserves and was consistent with its plan to lower external debt in foreign currencies.
This information was provided in a notification that was posted on Friday, July 8 on the Nigerian Exchange Ltd.
“Today confirms the settlement of the previously announced cash tender offer to redeem up to $450m of the $1 billion of 5.35 percent Guaranteed Senior Notes due 2024 (‘Notes’) by its subsidiary, Bharti Airtel International (Netherlands) B.V. (‘BAIN’)”, Airtel said.
According to Investopedia, a senior note is a sort of bond that is prioritised over other debts in the event that a firm files for bankruptcy and is put into liquidation.
The first cap on the redemption of $300 million had been established by Airtel in June.
But on July 6, 2022, it was raised because BAIN, in its exclusive discretion, chose to use cash resources to reduce the debt more significantly.
“An aggregate principal amount of $450m of Notes has been accepted for purchase for a total of $462.6m. All Notes accepted for purchase have been cancelled ahead of their maturity in May 2024.”
To help pay off its $3.5 billion in debt, Airtel Africa revealed intentions to sell 4,500 communication towers in five countries, including Tanzania and Madagascar, in its financial report in 2020. Additionally, it would aid the business in preparing for bond repayments.
In 2019, Airtel Africa went public on the London and Nigerian stock exchanges, using the profits to reduce borrowings from around $7.7 billion to $3.5 billion.
According to the telecom group's financial report, a $890 million repayment was due in May 2020.
The business completed the early repayment of its $505 million senior secured notes in March 2022.
After experiencing a string of losses and losing more than 4 million users in Ghana, Airtel shut down its operations there in 2021.
The entire stock of Airtel Ghana Limited, along with all of its customers, assets, and agreed-upon obligations, would be acquired by the Government of Ghana.
According to reports, Airtel used a lot of borrowings to support activities in Africa, where it was unable to solidify its market.