Investor Presentaiton
Finance cost & forex
airtel | Africa
Description
FY'22
FY'21
Change
$m
$m
$m
Interest cost on gross debt and other financial liabilities
310
305
5
Interest Income
(19)
(9)
(10)
Net interest Cost
291
296
(5)
19
25
(6)
310
321
(11)
93
102
(9)
403
423
(20)
19
19
422
423
(1)
(Excluding derivatives and Forex)
Other finance charges
Finance Charges
Derivatives and Forex (gain)/loss
Total Finance Charges
(Excluding exceptional items)
Exceptional items
Total Finance Charges
(Including exceptional items)
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 $21m on finance costs.
Our largest exposure is to Nigerian Naira where 1% devaluation would
have a negative impact of $7m on finance costs
Total finance charges (excluding exceptional
items) were lower by $20m, mainly due to:
Net interest costs were lower by $5m due to:
Interest income was higher by $10m due to
higher deposits and an increase in interest
rates.
Interest cost increased by $5m contributed by
higher interest on lease liabilities, partially
offset by lower interest costs due to a
reduction in debt.
Other finance charges were lower by $6m, due
to onetime benefit of interest on withholding tax
on interconnect usage charge provision.
Derivatives and forex losses were lower by
$9m, with the prior year having higher forex
losses mainly on account of devaluation of the
Zambian kwacha by 23%.
Exceptional item of $19m mainly consists of a
premium on prepayment of a $505m USD Bond
during the year.
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