VenturesNow

Airtel Uganda to sell 20% stake in IPO

Published

1 year ago

August 29, 2023

Telco, Airtel says it plans to raise 800 billion Ugandan shillings ($216 million) by selling a 20% stake to drive the expansion of its Ugandan operations.

Airtel Tuesday announced details of its initial public offering (IPO) which puts it on track to be the the second listed telecoms company on Uganda’s stock exchange after MTN Uganda, majority-owned by South Africa’s MTN Group, which was listed in December 2021.

At a press conference on Tuesday, managing director, Manoj Murali said that the sales of the $8 billion share offer would begin right away and end on October 13.

“The IPO gives preference to Ugandan investors, including the company’s customers, to own a share in Airtel Uganda and participate in its future growth. This is very much in line with one of our core values of customer-centricity,” said Murali.

According to the offer prospectus, the IPO’s results will be revealed on October 30, and the shares will be listed on the Uganda Stock Exchange on October 31. It further revealed that the goal of the IPO was to “create a source of future finance to support its (Airtel Uganda’s) extended growth strategy.”

The first mobile cellular network in the nation was introduced in 1995 by Airtel Uganda, formerly known as Celtel Uganda Limited. The company was rebranded as Airtel Uganda after being purchased by Airtel in June 2010.

In order to achieve its goal of a dividend payout ratio of 95% of retained earnings or net profit after tax, whichever is larger, Airtel Uganda anticipates paying dividends totalling 500 billion Ugandan shillings in 2023.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

9 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.