Investor Presentaiton
Finance cost & forex
airtel | Africa
Description
H1'23
H1'22
Change
•
$m
$m
$m
Interest on gross debt and other financial liabilities
164
154
10
Interest income
(11)
(9)
(2)
Net Interest Cost
152
145
7
Other Finance Charges
21
(0)
21
Finance Charges
(Excluding derivative and FOREX)
Derivative and FOREX (gain)/loss
(Excluding exceptional Items)
Total Finance Charges
173
145
29
184
24
160
358
169
189
Currency devaluation sensitivities for finance costs: On a 12 months basis,
1% currency devaluation across all currencies in our OpCos would have a
negative impact of $23m on finance costs (excluding derivatives).
Our largest exposure is to Nigerian Naira where 1% devaluation would have a
negative impact of $9m on finance costs (excluding derivatives).
Total finance charges were higher by $189m, mainly due
to:
•
Net interest costs were higher by $7m due to:
Interest cost increased by $10m contributed by
higher interest on lease liabilities, partially offset by
lower interest costs due to a reduction in market
debt and higher interest income.
Other finance charges were higher by $21m, due to
bond pre-payment charges and reversal of interest on
WHT on IUC provision in Tanzania in prior period.
Derivatives and forex losses were higher by $160m, as
a result of a $31m derivative loss, a Nigerian naira
devaluation impact of $30m, a CFA (Central African
franc) devaluation impact of $45m and the balance by
the devaluation in the Malawian kwacha, Ugandan
shilling & Kenyan shilling.
41View entire presentation