Nigeria (2023) Revolving Credit Facility
In June 2023, NGN 20.0 billion (approximately $26.6 million), was drawn under the Nigeria 2023 RCF.
FINANCING ACTIVITIES AND LIQUIDITY AFTER REPORTING PERIOD
Below is a summary of key facilities we have entered into, repaid or amended after the second quarter of 2023.
IHS Holding (2020) Revolving Credit Facility
In July 2023, the available commitments were increased to $300.0 million pursuant to the facility increase clause contained within the loan agreement.
Nigeria (2023) Revolving Credit Facility
In August 2023, NGN 20.0 billion (approximately $26.6 million) was voluntarily prepaid under the Nigeria 2023 RCF.
IHS South Africa Short-Term Facility
IHS Towers South Africa Proprietary Limited (“IHS SA”) entered into a ZAR 350.0 million (approximately $18.7 million) facility agreement in July 2023 (the “IHS SA STL Facility”). The IHS SA STL Facility is governed by South African law and funds borrowed under the facility will be applied towards general corporate purposes. The IHS SA STL Facility has an interest rate of 1.00% plus 2 Month JIBAR. The IHS SA STL Facility will terminate in September 2023.
In August 2023, ZAR 100.0 million (approximately $5.3 million), was drawn down under the IHS SA STL Facility.
SHARE BUYBACK PROGRAM
In August 2023, the Company’s board of directors (the “Board”) authorized a stock repurchase program for up to $50 million of the Company’s ordinary shares, effective as of August 15, 2023 through August 15, 2025, subject to market conditions, contractual restrictions, regulatory requirements and other factors.
Repurchases under the program may be made in the open market from time to time, in privately negotiated transactions, through accelerated repurchase agreements or otherwise, with the amount and timing of repurchases depending on and subject to market conditions, alternative uses of capital, corporate needs, applicable regulatory requirements and other factors, at management’s discretion. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization.
This stock repurchase program does not obligate the Company to repurchase any set dollar amount or number of ordinary shares and may be extended, modified, suspended or terminated at any time without prior notice at the Company’s discretion.
Full Year 2023 Outlook Guidance
The following full year 2023 guidance is based on a number of assumptions that management believes to be reasonable and reflects the Company’s expectations as of August 15, 2023. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release when considering this information. The Company’s outlook reflects 1) $110 million reduction in guidance includes a $141 million foreign exchange headwind of which $142 million is from the Nigerian Naira net of foreign exchange resets, implying an increase of approximately $31 million had the average FX rates previously assumed in our guidance remained unchanged, 2) $48.1 million of non-recurring revenue as adjusted for withholding tax in first quarter of 2023 from our smallest Key Customer in Nigeria for services previously provided but for which revenue had not been recognized, and 3) approximately $25.0 million of power pass through revenue in South Africa. Guidance does not include revenue from the Egypt operations.