Airtel Africa to sell 4,500 towers

Airtel Africa to sell 4,500 towers

Airtel Africa announced plans to shed 4,500 towers across five countries to aid the company in reducing its $3.5 billion debt, and prepare for upcoming repayment dates.

Bloomberg reported, the operator will sell towers in Tanzania, Madagascar, Gabon, Malwawi and Chad, revealed chief executive officer Raghunath Mandava.

“We are constantly seeking to bring down our debt, and we prefer to bring it down even faster with the tower deals,” he told the news agency. The company will rent the towers back from the buyers, he added.

Airtel Africa is expected to repay 750 million euros ($890 million) in May, and $505 million is due in March 2023, according to the company’s annual report.

The company’s debt once stood at $7.7 billion but was reduced to $3.5 billion, after using proceeds from the company’s dual IPO with former parent company Bharti Airtel, said Mandava. The current debt includes $18 billion in bonds that have cross-default clauses with its biggest shareholder Bharti Airtel.

Airtel Africa reported profit after tax declined at the end of Q2 (ending September 30), taking in $145 million compared to £228 million in the same period last year.

MORE ARTICLES YOU MAY BE INTERESTED IN...


Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.