Airtel Africa, a subsidiary of Bharti Airtel, on Wednesday said Qatar Investment Authority (QIA) will invest $200 million in the company through a primary equity issuance.
According to reports in Indian media, the amount will be used to pare debt of the company which stands at around $3.5 billion. Airtel Africa also intends to come up with an initial public offering and use the proceeds primarily for further reduction of debt, the company had said earlier.
“QIA, the sovereign wealth fund of Qatar, has agreed to invest $200 million through a primary equity issuance in the company. The proceeds will be used to further reduce Airtel Africa’s existing net debt,” Airtel said in a statement.
This investment from QIA is in addition to the recent $1.25 billion investment by six leading global investors, including Warburg Pincus, Temasek, Singtel, and SoftBank Group International. Representatives from the six investors have already joined the Airtel Africa board. The fresh transaction with QIA will not involve any sale of shares by the existing shareholders, the statement said.
“We are excited to welcome the Qatar Investment Authority as a long-term strategic equity partner. We look forward to a long and fruitful partnership with QIA,” Airtel Africa said.
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