Tear Sheet: IHS Holding Ltd.

In our view, MTN Nigeria?s decision to not renew approximately 2,500 of IHS Holding's telecommunications tower leases, of which, approximately 2,000 are due to expire year-end 2024 and approximately 500 during 2025, is credit negative for IHS Holding. As of Sept. 30, 2023, these leases represented about 15.2% of IHS Holding?s total telecom towers in Nigeria. We have included the effect of the expiring leases on revenue and EBITDA in our base-case assumptions, leading us to lower our 2025 revenue prediction by $180 million and EBITDA prediction by $108 million. As a result of the lower EBITDA, we believe the S&P Global Ratings-adjusted funds from operation (FFO)-to-debt weighted ratio will fall to about 20.5% in 2023-2025 compared to our previous

...November 21, 2023 S&P Global Ratings expects reduced financial headroom for IHS Holding Ltd. (IHS Holding) during 2023-2025 due to MTN Nigeria Communications PLC's (MTN Nigeria)'s nonrenewal of lease agreements. In our view, MTN Nigeria's decision to not renew approximately 2,500 of IHS Holding's telecommunications tower leases, of which, approximately 2,000 are due to expire year-end 2024 and approximately 500 during 2025, is credit negative for IHS Holding. As of Sept. 30, 2023, these leases represented about 15.2% of IHS Holding's total telecom towers in Nigeria. We have included the effect of the expiring leases on revenue and EBITDA in our base-case assumptions, leading us to lower our 2025 revenue prediction by $180 million and EBITDA prediction by $108 million. As a result of the lower EBITDA, we believe the S&P Global Ratings- adjusted funds from operation (FFO)-to-debt weighted ratio will fall to about 20.5% in 2023- 2025 compared to our previous forecast of 22%. We believe the...

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