Connect with us

Telecom

Airtel Plans $1Bn Overseas Loans

Published

on

Kindly share this post

Bharti Airtel is planning to raise about $1 billion through overseas loans as it aims to refinance its high-cost debt to free up cash for capex investments needed to expand its 4G network to take on its India competitors, Reliance Jio Infocomm and the Vodafone-Idea Cellular combine.

 

Billionaire Sunil Mittal-controlled Airtel is in talks with investment bankers to raise the syndicated loan in a month or two, a source said.

 

“The company may be able to raise the money by August. It makes sense for the company to go for an overseas syndicated loan,” said one of the people cited above.

 

At least five to six banks are expected to arrange the offshore credit for the telco which is involved in a brutal fight for subscribers with moneyed Reliance Jio.

 

Vodafone and Idea are also expected to up their game aggressively after their merger to be competitive in amarket where revenue and profitability have taken severe hits but the need to keep investing to expand 4G networks is paramount to stay ahead of rivals.

 

Airtel’s bitter rival Jio too has been building up its coffers. The Mukesh Ambani-owned telco recently tapped the Korean credit market to raise $1 billion (Rs 6,800 crore), a few weeks after it raised Rs 2,500 crore by selling domestic corporate bonds.

 

Jio also recently raised $500 million through a syndicated Samurai loan from three Japanese banks in a bid to diversify its borrowing sources.

 

Airtel, which is planning to spend Rs 24,000 crore as capex in this fiscal year ending March 31, 2019, may raise two-three year money, which will be priced after adding a mark-up or spread over the LIBOR (London Inter-Bank Offered Rate), a benchmark gauge, the people said.

 

The plan to refinance comes at a time the telco has seen its debt increase to over Rs 95,000 crore at March end compared with over Rs 91,000 crore a year back.

 

Earnings before interest, tax, depreciation and amortization (Ebitda), however, have fallen 12% in the same time, pushing up the net debt to Ebitda to 3.23 from 2.63 a year ago.

 

India CEO Gopal Vittal had termed Airtel’s debt to Ebitda ratio as “comfortable”. The mobile phone operator’s shares ended 1.6% higher at Rs367.35 on the BSE Tuesday, outperforming the benchmark Sensex.

 

The telco, which will soon be replaced by the Vodafone-Idea combine as India’s largest telco, has raised over Rs14,000 crore through stake sales in its tower and DTH units over the last year, besides $6.2 billion through overseas and local bond issuances over the last few years. This though will be the first time in several years that the telco is trying to access syndicated overseas loan.

 

Experts say companies this year are shying away from the dollar bond market as a spike in US Treasury yields has helped increase the borrowing cost. In the past one year, the US Treasury benchmark yield shot up 50 basis points to 2.87% now.

 

Their preference instead is for syndicated bank loans.

 

“There is a lot of capital available in loan form from international banks that have interest in India. It helps builds business relations with Indian corporates,” said the head of a foreign bank, who asked not to be named.

 

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

Telecom

Telcos Record N27Bn Loss from Damaged Fibre Cables

Published

on

Kindly share this post

Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


Kindly share this post
Continue Reading

Telecom

NCAIR Relaunch: Pantami, Tijani Fight for Credit

Published

on

Kindly share this post

Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


Kindly share this post
Continue Reading

Telecom

ABoICT Lecture 2024 to Focus on Artificial Intelligence (AI) In A Digital Economy

Published

on

Kindly share this post

This year’s Africa’s Beacon of ICT Merit and Leadership lecture will focus on the role of artificial intelligence in a digital economy with the theme: “Artificial Intelligence (AI): The Good, The Complex and The Anticipated”.

The lecture which will herald Africa’s Beacon of ICT Merit and Leadership Awards hold on May 25, 2024 at Four Points by Sheraton.

The sixteenth edition of the award ceremony according Ken Nwogbo, editor-in-chief of Nigeria CommunicationsWeek the organizers of the event, “is a special edition to recognize and celebrate organizations and individuals in the ICT industry that have been distinguished in delivery innovative services in the sector.

“Most of these organizations and individuals have consistently being voted by our readers as leaders in their areas of operations and we have decided to reward them in this especial edition”.

He added that, AI is considered to have the potential to instigate a fourth industrial revolution,1 and is dramatically changing people’s patterns of interaction and economic activities.

“The traditional factors of production and physical capital and labour may no longer promote substantial economic growth. It is generally believed that AI will be one of the most important factors determining future economic growth.

“However, unlike traditional machines, which replaced the use of human and animal labor for simple manual work and heavy or dangerous activities, AI-related inputs may change the type of human work in a comprehensive way.

“In contrast to previous industrial revolutions, AI does not simply involve the invention of a new machine or technology. Instead, AI has similarities to the accumulation of human capital, as it can learn and accumulate knowledge by itself,” he said.

The Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture is designed to explore efforts to put Nigeria on the global Information and Communications Technologies map.

The lecture series however is reserved for distinguished achievers in the ICT sector.

Past lecturers included Dr. Ernest Ndukwe, then executive vice chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Uche Orji, managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodu Omoniyi, Managing Director/CEO, VDT Communications; Ayotunde Coker, Managing Director, Rack Centre Limited; Peter Adedayo Arogundade, managing director and chief executive officer, Sidmach Technologies Nigeria Limited; Dr. Adewale Obadare, chief visionary officer, Digital Encode and John Obaro, CEO and founder of Systemspecs; Prof. Isa Pantanmi, minister of Communications and Digital Economy; among others.


Kindly share this post
Continue Reading

Trending