Airtel Africa to raise $1.25 billion from six global investors

New Delhi: Airtel Africa, a subsidiary of Bharti Airtel, on Wednesday announced that six global investors have agreed to invest $1.25 billion in the company through primary equity issuance.

The company, in a statement, also said that it intends for an initial public offering (IPO) at an international stock exchange and use the proceeds for further reduction of debt.

“Six leading global investors comprising Warburg Pincus, Temasek, Singtel, SoftBank Group International and others have agreed to invest $1.25 billion through a primary equity issuance in the company (Airtel Africa) at a post money equity value of $4.4 billion,” the Bharti Airtel’s statement said.

It further said that the proceeds of the investment will be used to reduce Airtel Africa’s existing debt of around $5 billion and for growth of its operations.

Raghunath Mandava, MD and CEO, Africa, Bharti Airtel, said “The transaction will help us further deleverage our balance sheet and boost our capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money across our operations.”

The transaction will not involve any sale of shares by existing shareholders, the company said.