Airtel Signs $138Mil Loan Agreement With Nigeria’s Banks
This news comes just as the telecommunication firm prepares to list its shares on the Nigerian Stock Exchange (NSE) by the 4th of July 4 and also list its African unit on the London Stock Exchange.
Airtel Nigeria confirmed that the loan agreement signed on June 17, 2019, stipulated that the banks would allow it to repay the loan over five years and also that they offered the mobile operator a two-year moratorium.
While the purpose of the loan was not stated, the Group described the telecoms sector as a capital-intensive one that required large amounts of capital and had other long-term costs.
According to Airtel, such expenses are related to the acquisition and development of new networks, as well as the improvement of existing systems.
Airtel, which is Nigeria’s third largest mobile operator, said that it intended to use the net income from its Initial Public Offer mainly to reduce its debt of $750m.
The company said that the Nigerian offer was an institutional offer only; therefore, shares would be offered to exclusively to qualified institutional and high-net-worth investors in Nigeria, as specified in Rule 321 of the Securities and Exchange Commission Rules.
According to Airtel, between 501.125 million and 716.406 million shares are being offered to Nigerians.
It named Quantum Zenith Securities Investments Limited and Barclays Securities Nigeria as the issuing houses for the offer.
Credit: This article originated from www.nigeriacommunicationsweek.com.ng