Good morning or good afternoon all, and welcome to the Helios Towers Q3 results call. My name is Adam, and I'll be your operator today. If you'd like to ask a question during the Q&A portion of today's call, you may do so by pressing star followed by one on your telephone keypad. I will now hand the floor over to Tom Greenwood to begin. Tom, over to you.
Thank you very much, Adam, and welcome everyone to the call. Good morning or good afternoon. Really great to speak to you today. I'm on page 2 of the slide deck, and we'll present to you now our Q3 performance. With me as always, Manjit Dhillon, our CFO, and Chris Baker-Sams, our Head of Strategic Finance and Investor Relations. Moving on now to page 5, the key highlights. Very pleased to present to you these strong performance and earnings today. I think what we've seen so far this year is continued strength in terms of our organic business, and also obviously our inorganic business as well, folding in as we go through the year.
Year-on-year site count up 24%, 18% on tenancy growth, and that's 9% and 7% respectively on the organic side. Already having completed almost 600 new build to suit sites so far this year, which is actually our record in the company history. This translates into strong financial performance that we see here, 25% on the revenue and 18% on the EBITDA. Organic being 14% and 10% year-over-year, which we're very pleased with. As we've seen a bit this year, there's been a bit of margin dilution, which continues. It's largely driven by a mixture of the acquisitions which come on board with a lower margin day one, obviously then to build that later.
Also some increases in power prices, which actually mean that our both our revenues and our OpEx go up, because of the strength of our contracts and the contractual nature. We pass a lot of these OpEx increases on the power prices through to our customers. What you're seeing here is a dynamic whereby, for a given absolute dollar figure of EBITDA, when you have both revenues and OpEx a bit higher, the margin naturally or mathematically comes down a bit. That's what you're seeing here at the time. What it means is our contracts do work, and we are protecting ourselves from the increased power prices, particularly fuel, which is obviously driven largely through the price of oil. Moving on now to Oman.
Oman, which we announced about 18 months ago. I'm very pleased to say that we received the royal decree for our license a couple of weeks ago, and now are in full closing mode. We expect to close that within the next 4-6 weeks, and really get ourselves ready for a full year next year, which is very exciting. Obviously all of the financing is already in place for that. Lastly here, we are increasing or tightening upwards our tenancy guidance for the year. As you can see, we've had a strong year so far, and we have a very good pipeline for Q4.
Indeed we have a very, I would say, strong pipeline building now for next year as well, which is setting ourselves up for 2023. Seeing some good demand, to be honest, from multiple markets and multiple customers, which is always good to see. Moving on now to page 6, just here we see graphically largely what I've just talked through. Really what you can see here is the effect of largely our expansion strategy that we've been doing on geographic expansion over the past couple of years, whereby you see the tenancies absolute figures going up. The tenancy ratios, they're getting diluted a bit, from 2.1 in 2020 to about 1.9 now.
That's obviously the impact of the new markets coming on board with the lower tenancy ratio and therefore building up, going forward or loading up the underutilized assets going forward, which is what we're very much doing on the sales front right now. You can see the same dynamic there on the EBITDA. Absolute EBITDA obviously going up, margin dilution. A little bit of an impact there as well from the fuel prices or power prices this year. A similar trend there on the portfolio free cash flow. All very much moving in the right direction, aligned with expectations and building ourselves up for future growth.
Here on page 7, a little bit more of a deep dive into the Oman expansion, which, as I mentioned, we've been building now for about 18 months since we announced it last year. The team's very much in place and, Philippe Loridon and Ramzi Khoury, you can see here on the page, being the regional CEO and the MD, leading that, obviously with the support from many others around the group.
I was actually in Oman over the past couple of days, meeting the team, meeting some key stakeholders there, including all of our customers, which include Omantel, Ooredoo and Vodafone. Again, we're very much planning for next year now in terms of how we can support the mobile operators in that market, achieve even more coverage, and capacity requirements. Obviously with 5G very much on people's mind there, that drives the need for significant densification of networks. We're very much ready for that. Moving on to page 8, a quick touch here on our sustainability business, and again, a reminder that a few months ago, we were very pleased to be awarded our first ever MSCI rating, which was a triple A.
Of course, we're now included in the FTSE4Good index as well. I'm also very, very pleased to say that our South African business has achieved the top level there for Broad-Based Black Economic Empowerment. This reflects our dedication to driving that agenda in South Africa. We recently brought on board a new local investor, Clearwater Capital. Obviously there you can see our South African team. Great, great work to our South African colleagues there. Now, I'll hand over to Manjit to take us through the next section.
Thanks, Tom. Hello, everyone. It's great to be speaking with you today. I'll be going through the financial results. Starting on Slide 10, continuing on from what Tom mentioned earlier, despite the broader macro volatility we are seeing well across the globe, we've had a strong nine months of the year reflecting continued organic tenancy growth and double-digit organic adjusted EBITDA growth, which is all complemented by our acquisitions completed in Madagascar, Malawi, and Senegal last year. On this slide, you'll see we've summarized the main KPIs, which I will be talking through in more detail over the next few slides. In general, we're seeing continued financial and operational delivery, and good growth, across a number of these key metrics. Jumping into the details, moving on to Slide 11, our sites and tenancy growth.
We've seen strong organic tenancy growth in Q3. From a site perspective, we've seen a 24% increase year-on-year, reflecting organic growth of 894 sites and 1,213 acquired sites across Madagascar and Malawi. In fact, we've already added more sites organically this year than we have in any year historically. That really does reflect the resilient structural growth opportunity across our markets. Year-on-year, we've added 3,140 tenancies, which is an 18% increase from Q3 2021. Organically, we added 1,448 tenancies, and inorganically, 1,692.
Our tenancy ratio has dropped slightly on a group basis, and that is largely driven by the lower tenancy ratio of the acquired sites in Madagascar and Malawi, which combined to have a tenancy ratio of 1.4. Excluding these acquisitions, though, our tenancy ratio has slightly decreased by 0.004x year-on-year, and that really reflects the strong site growth across our markets, which I've just spoken about. Ultimately, the increased site base provides a large base for driving lease-up and therefore returns going forward. On to Slide 12. We've seen continued growth in revenue and EBITDA, with 25% revenue growth and 16% adjusted EBITDA growth year-on-year, up 15% and 11% organically, respectively.
The revenue growth is principally driven by tenancy additions, in addition to CPI and power price escalations, which I'll come on to on the next slide in more detail. Adjusted EBITDA grew by 16% year-on-year, again, driven by our organic tenancy growth and contributions from our new markets. Our EBITDA margin declined 4 percentage points year-on-year to 49%. The impact is driven by the rising power prices that Tom just mentioned, and which I'll come on to on the next slide, but also due to entry into Malawi and Madagascar over the past year.
These acquired assets have a combined margin of 30%, reflecting the lower initial tenancy ratios of those assets, which we of course expect margins to expand over the medium term as we lease-up and better utilize those tower assets. Moving on to Slide 13. Here we set out walkthroughs of our revenue and EBITDA progression for Q3 year-on-year. The first four bars of each bridge, organic tenancy growth, power escalation, CPI escalation, and FX, all combine to make up organic growth and acquisitions on the far right-hand side being the contributions from new markets. Organic tenancy growth of 1,448 year-on-year has really driven 9% of both revenue and EBITDA, that you can see, on both the bridges. I want to take a quick minute to focus on escalation movements.
As a quick reminder, we have escalators in every customer contract in all of our markets. For power, 50% of our contracts have quarterly power price escalators and 50% have annual power price escalators. These escalate in relation to the local pricing for fuel and electricity. If the prices go up, then the escalators go up, and if the prices go down, then the escalators go down. For CPI, we have annual CPI escalators, and they kick in around January. Year-on-year, we've seen that on average, local fuel prices have increased by 39%. This is principally driven by DRC, Tanzania, and Ghana, which have accordingly increased revenues of 7%, with some further escalations also expected in Q4. We have a robust business model by design.
We've structured the increasing revenues to effectively offset the increased OpEx due to higher power prices to really protect our EBITDA on a dollar basis. On the left-hand side, you can see that the power revenue of $8 million from revenue falls through to EBITDA at $1 million on the right-hand side. From a margin perspective, there is some dilution as EBITDA margin on the power price is lower than the overall group margin, and in this case diluted margin by 2 percentage points. However, in a year of macro volatility where we've seen 39% power price increases, we've been able to keep our EBITDA from power flat or slightly up, meaning that our contracts are escalating effectively and offset the OpEx impact of higher fuel costs. Moving on to CPI and FX.
Local CPI is currently around 9% across our markets, with revenues up 3% from our CPI escalators. These escalators occur annually and principally in the earlier part of the year. We'll see escalations kick in, capturing more of the CPI movements as we go into the new year. But this increase from escalators has broadly offset any FX depreciation, which is actually also well managed by the fact we've set up the business such that the majority of our revenue and EBITDA is in hard currency. While we see some FX depreciation in Malawi and Ghana, in particular, these are currently having a limited impact on the overall group results. We will, however, see some increased volatility in Ghana in Q4.
We do expect there to be a little bit more FX impact as we go into the quarter, but overall, this is a small part of the overall portfolio, and again, our CPI escalators will mitigate this when they kick in in early 2023. I think both these bridges provide a useful demonstration of the business mechanics. Standing back and looking at this from an EBITDA level, the key driver of growth is tenancy additions, both organically and inorganically. Previously at the Capital Markets Day, we showed that however the last six or seven years our EBITDA growth has highly correlated to tenancy growth with little to no correlation to FX or oil prices. This here is a further demonstration of our robust business model and our earnings growth being driven by tenancy additions, and being well protected from macro volatility.
With that, move on to Slide 14. H ere we'll show the usual breakdowns provided, which are very consistent with previous updates. We have a robust business model underpinned by long-term contracts with diverse customer base, have strong hard currency earnings. 98% of our revenue come from large blue chip mobile network operators who are largely investment grade or near investment grade, comprising mainly Airtel Africa, Orange, Axiata, and Vodacom. Our largest single customer exposure is 28%, and that's actually spread across five different markets, so very well diversified. We have strong long-term contracts to our customers, and at the end of Q3, we have long-term contracted revenues of $4 billion with an average remaining life of seven years. This is up from $3.7 billion at the end of Q3 2021.
This means excluding any new wins or rollout, we have that revenue contracted, providing a strong underlying earning stream for the business. We also have 62% of our revenues in hard currency being either US dollars or euro pegged. As a reminder, this will increase to 67% pro forma for the announced acquisitions, which translates to 72% when looking at it from an adjusted EBITDA perspective. Overall, this provides a fantastic natural FX hedge for the business, again complemented by our inflation escalators we have in our contracts. Finally, on this slide, I'll just mention that with the new market expansion, we're seeing a more diversified split of revenue per market and pro forma for the acquisitions. No single market will account for more than 32% of revenues. On to Slide 15. Here we have a look at CapEx.
For the year to date Q3 2022, we have incurred total CapEx of $214 million, which includes $63 million of acquisition CapEx, principally related to our entry into Malawi. As mentioned earlier, we're updating our tenancy guidance to the top of the previously communicated range of 1,400-1,700. Consequently, we are also updating our organic CapEx guidance to reflect the increased tenancies and now target a range of $180 million-$200 million, of which $152 million has already been spent year to date. Just to be clear, the updates here with CapEx is purely to the guided number of tenancies and is really just a function of the costs associated with increased tenancy rollouts.
For acquisition CapEx, the guidance is consistent at $650 million, which reflects the acquisitions across Oman and Malawi, in addition to some deferred consideration for our Senegal and Madagascar acquisitions. Again, this remains unchanged. As highlighted in the previous quarter, 30% of our $575 million Omantel acquisition will be funded by our local minority shareholder, Rakiza, after adjusting for any pro rata local debt that we'll raise. When we close the deal, we see that as a cash inflow into the cash flow statement at year-end. From a cash perspective, the total outflow of funds for the Oman deal will be less than previously guided. Moving on to Slide 16, which shows a summary of our financial debt.
Our net leverage at Q3 was 4.1x and continues to be within the medium-term range of 3.5-4.5. We expect this to tick up to be around the high end of the range as we close the other markets during the course of the year, but expect ample headroom against our financial covenants. As it stands today, we have circa $700 million of available funds, which is sufficient for our announced acquisitions, which are due to close, and our organic growth, for which our established markets are broadly self-financing. I think we sit here on a very strong balance sheet with long 10-year debt, with nearest maturity for group debt, not until December 2025. Our drawn debt has an average remaining life of four years.
We also have very limited floating exposure, with 96% of drawn debt at a fixed rate, again, giving us good protection against a rising interest rate environment. Overall, we're in a great position to say that if we do choose to do any refinancings or financings, we'll be doing this for strategic reasons. Finally, a quick comment on our markets is that six of our markets have either been upgraded or moved to improved outlook during the last year by one or more credit rating agencies, including our two largest markets, Tanzania and DRC, with Ghana being the only market downgraded. Moving on finally to S lide 17.
As mentioned earlier, given our robust tenancy growth and pipeline, we're pleased to say that we've tightened our organic tenancy guidance upwards and the group now targets organic tenancy additions of 1,400-1,700 in 2022 from a previous range of 1,200-1,700. This implies we'll have one of our best ever years on record in terms of organic tenancy growth, and from a financial perspective, our lease rate per tenant is tracking in line with guidance up 3% year-to-date and is trending towards the higher end of the range with Q3 at 2.2, lease rate per tenant up by about 5%. Also as discussed earlier, due to higher power prices, we've also updated our margin guidance for full-year 2022 to 50%-51%. All in all, we're broadly progressing to plan and expected to deliver one of our best ever years of tenancy growth. With that, I'll pass back to Tom to wrap up.
Thank you very much, Manjit. I'm on page 18 now, and really the key takeaways for me of our performance year to date, and you know our outlook for the rest of the year, tenancy growth clearly being strong, and that's continuing literally at this minute with sites being rolled out every day as we speak. Again, as I mentioned before, we are now building the pipeline for next year, which is always good to do at this point of the year. Very pleased to say that Oman will be closing in a matter of weeks now, setting us up again for the enlarged platform for the full year next year, which is very exciting news.
Again, just to reiterate, outlook next year, definitely building and looking strong across the enlarged platform. I think it's worth just reiterating what Manjit went through in terms of the robustness of our business model as well as the structural growth that we clearly have in our markets. I think page 13 really demonstrates how resilient our EBITDA is given the contractual protections that we have in our contracts, obviously for, inflation, for power prices, and for FX. All in all, pleased with the performance so far this year and looking forward to the months and years ahead. With that, I'll hand back to Adam, the coordinator, and we'll be open for Q&A. Thank you.
Thank you. As a reminder, if you'd like to ask a question today, please press star followed by one on your telephone keypad. If you wish to withdraw your question, that's star followed by two. When preparing to ask your question, please ensure your headset is fully plugged in and unmuted locally. That's star one to ask a question. Our first question today comes from Jeremy Evans from Jefferies. Jeremy, please go ahead. Your line is open.
Yes. Good morning. Thank you very much for taking my question. I've got two questions, please. Firstly, when we think about the trajectory of CapEx excluding acquisitions beyond the current year. See the starting point is $180 million-$200 million in 2022. As we move forward, obviously it's an enlarged group, but I think you previously guided that more of the tenancy growth would come from lease-ups as we go forwards. A framework to think about how we should be modeling CapEx into next year, please. Then the second question has to do with DRC. We've obviously read reports of a taxation dispute between the government and the mobile network operators.
Could you clarify for us please why that stuff can't happen to Helios? Thank you.
Thanks, Jeremy. Manjit, do you want to take the first one on the CapEx guidance?
Yes.
I'll take the next one.
Yes, sure. Hi, Jeremy. W ith regard to CapEx for 2023, we'll give more detailed guidance when we give our next year update at the full year results. In short, one thing that we set out during the Capital Markets Day was really how you model CapEx going forward into the medium term. Effectively, as you rightly say, we will be expecting over the next few years that switch from build to suit to co-locations. We will find there probably being more co-lo than what we found this year, which will subsequently reduce the amount of CapEx that we'll have. One thing that we just broadly guide towards is including $10,000 for a co-location, $125,000 for a new site.
We'll also do incremental spends in terms of Project 100, which is the project that we've got to reduce our carbon emissions, which will also have a financial benefit. We expect about circa $10 million per annum. Obviously we'll have some incremental upgrade work we'll do on the new acquisitions, and we'll announce that in the beginning of every year as well. Broadly, we expect it to be about $15 million-$20 million for 2023. On top of that, we'll have some non-discretionary CapEx as well, which relates to maintenance and corporate, and that's typically been around $3,000 per site.
When you bring all that together, we'll be broadly around, I'd say, $150 million, if not a bit higher in 2023. As we go through the medium term, you will find it probably bouncing around that number. Again, we'll give more detailed guidance when we give our full year results.
Thanks, Manjit. Jeremy Evans, Yes, just on the point around the tax. W E've been following that obviously in DRC. L ook, I guess tower cos are generally just simply a lot less relevant and a lot more almost under the radar, if you like, for authorities. We very much comply with all of our taxes across the group, always have done, always will do. We have good and open relationships with the tax authorities, that's very much our ethos. We we ensure that we pay the taxes as and when they are due. I think we've always done that.
Look, all companies sometimes have disagreements with the tax authorities, that's normal. It's about, how you resolve it and how you discuss it openly in an amicable way. That's our ethos. We'll continue doing that and, I'm sure that we'll continue to have good relationships with all authorities across our markets.
It's clear. Thank you very much.
Thanks, Jeremy Evans.
The next question comes from Alexandre Ronvaux from Bank of America. Alex, your line is open. Please go ahead.
Hi, guys. Thank you for taking my question. Just one on maintenance CapEx, if you could maybe come back on why such a strong phasing during the year and the strong ramp up we should expect, given the $30 million guidance for the full year, and why such a ramp up in Q4? Why not more evenly spread across the year? If we should expect some similar seasonality in the following years. Another question just regarding M&A. obviously, you've taken a little bit of a step back, I think, from the capital market there, obviously focusing on your current geographies and including the last two deals you've had in the pipe.
I've read across the press that you had already though considering at some point perhaps selling towers. Would you be actually interested in such a big portfolio and changing meaningfully your scale across Middle East? Would that be something? If not, what would be the impediment to do such a deal? What would be the thing that would stop you from going across or considering even such a deal per se? Thank you.
Thanks very much, Alex. M aybe I'll just take both of those. The maintenance CapEx, we obviously give guidance on a yearly basis. As Manjit said, about $3,000 per site per year is the rough guide. Look, it is seasonal. It is a bit lumpy. A lot of the CapEx is driven as to when generators come to the end of their life and when batteries come to the end of their life. We monitor that obviously constantly. That's part of what our operational teams do. A generator can typically last for anywhere between 20,000-40,000 hours, and batteries 3-5 years.
Some of the new lithium ones now last 10 or up to 10, which is good. It's really just due to when our existing fleet of generators and batteries need replacing. That's the largest driver for that, which does mean that it gets a bit lumpy. What we typically would recommend, though, is if you want to normalize view, maybe take the last 12 months view of it. That's probably what we'd recommend there just to see a smoothing of it.
O n M&A, look, as communicated earlier in the year at the Capital Markets Day, we are very much focused right now on integration and really getting the new market up to the high level of business excellence standard as our existing markets and really starting to drive the lease-up on the new towers we've acquired and, and therefore the margins and the terms. That's very much happening right now. O bviously, we'll be folding Oman in in the coming weeks as well, and then bedding that down for a bit. As a prominent tower company in the Middle East, Africa region, we're always very much aware of all the deals going on really at any given time.
W e have a business development team whose role it is to look at deals that come through and assess them for reasonableness or appropriateness or alignment with our strategy and our focus. That very much continues today as it did a year ago or two years ago. That doesn't stop. Remember, deals of these nature typically take two years or so to come to fruition. Working on a deal today means that something maybe happens in end of next year or 2024. I think in respect of the deal you specifically mentioned, clearly we know about it, everyone does.
I think we take a very disciplined approach to assessing individual markets. that's always what we have done, and that's always what we will continue to do for all deals including this one. Obviously, I can't give any details on that, but just really reiterating we take a very disciplined view, and we have our acquisition criteria, which we publish as well, and we'll continue to do that. From a strategic point of view, still very much focused on integration, organic growth, getting the lease up going in the new markets, right now going into next year. No change in that respect.
Okay. Maybe just one follow-up, if I may. Because we've had some of your peers perhaps, taking a step back from, actively engaging in M&A or even considering M&A given the current, macro environment. That's not really what you're saying. You're mostly saying, you continue to assess whatever comes, on the table for their own merits, and it's not like given the current rate environment or, your discussion with banks on financing that you see any problem into potentially actually growing the business inorganically.
Well, I'm not saying that. I'm saying we look at deals that are happening and, if anything, it's always a learning experience, right? We have a business development team. They are doing, as always, a very good job. The job of a business development team is not always to buy everything or win every deal. It's to assess every deal, learn about it and understand whether that could be a good fit for Helios. That very much continues today. I think that's the right thing to do rather than bury our head in the sand and not know what's going on.
I very much prefer to know what's going on, and then we can make the right decision, as and when stuff comes up. We're, as I said before, we're very disciplined and the strategy has not changed since earlier in the year. We're very focused right now on organic growth, integrating with deals we've announced and bedding everything down. That runs through into next year as well.
Okay. Wonderful, Tom. Thanks for the call there.
Thanks, Alexandre Ronvaux. Cheers.
As a reminder, if you'd like to ask a question today, please press star followed by one on your telephone keypad now. Our next question is from Stella Cridge from Barclays. Stella, your line is open. Please go ahead.
Thank you. Morning, everyone, and many thanks for the presentation. I wanted to ask in a couple of areas. The first is, given the Oman transaction is likely to close quite soon, how is the funding plan looking for that? A re you close to getting that finalized? J ust in terms of split between new borrowing and existing cash usage, how much would you like to keep on the balance sheet in cash? That would be great. The second was just in terms of the move in the net debt quarter and quarter, over and above the disclosed items in the release. Was there a working capital outflow, for example, that would explain that increase in net debt? What would be the outlook for that going into Q4? That'd be helpful as well. Thanks.
Thanks. I'll take those.
Yes. Stella, Manjit, you take that.
Yes. Perfect. In terms of the funding plan, we're still in the process of finalizing that. Ultimately, we do expect to have a local facility, also raised in Oman. We're actually finding in that market at the moment, we can actually get some very competitively priced debt, long tenure as well. We'll look to do something there, which will mean that we'll probably raise something in the region of, I'd probably say north of $150 million, is what we're looking at at the moment. Ultimately, that will reduce the debt that we'll draw from a group perspective. That will all be confirmed as and when we close that transaction.
I think one of the positives here is that when we look to do the financings, we're doing it for a strategic reason. We've got the financing in place already, so we can pick and choose which financial facilities that we utilize. All going to plan in that case. In terms of balance sheet and cash, we'll draw a bit from our cash facilities at group for this transaction. That will be minimized versus the drawdown that we'll take from a local facility plus the RCF for 30% as well. After all of this, we still would expect to have cash on balance sheet in excess of $100 million, which is normally where we like to be on any given period.
On the position around net debt, yes, it has slightly increased. I wouldn't say this is a working capital issue. In fact, we've actually had debtor days reduced from Q2 to Q3. We've actually saw a lot of our customers paying, so no issues with regards to bad debts or anything else like that. Working capital is actually very much tightened. This is probably more linked to the fact that we've seen a bit of an uptick in terms of CapEx, so investing in the new site builds, and we'll see that return coming through over the coming periods.
That's fantastic. Many thanks. S ince you're planning to keep the $100 million on the balance sheet and perhaps not draw by the sounds of it any of the other loan facilities, I just want to ask about the 2025 maturity. Obviously, still fairly well away, but just in terms of how you might think about setting yourself up to address that maturity in 2025. I just wonder what were you thinking? Were you looking to potentially, accumulate some cash from free cash flow or diversify the capital structure? Be great to just hear some big picture thoughts on that.
Yes. I think at the moment, all options are really on the table. Probably, the answer is a bit of both. A combination of accreting some cash up on the balance sheet. Also, really at this point, we're under no burning platforms to go into a refinancing, as you've also alluded to there. We'll continue to just sit on the debt packages that we have, and we'll continue to monitor the market. It's clearly quite volatile at the moment. Actually being in a position where we have long-tenored debts, which is fixed, actually is a bit of an outlier, which is a great position to be in. From our perspective, we'll wait, as we wait, the core premium also reduces. We'll drop by a half next summer. We'll drop to zero this summer afterwards.
We'll just continue to monitor that. We could either look to do a full refinancing in terms of bonds. We could look to accrete some cash and pay down a bit, and then do a smaller refi. We could also look to utilize the bank markets across multiple markets as well. I think the positive I take away from this is that we've got multiple routes to refi, and actually some strategic ones that potentially could continue to reduce our cost of debt, potentially if the markets recover slightly.
That's great. Many thanks for that answer.
Thanks, Stella.
The next question comes from Dmitry Ivanov from Jefferies. Dmitry, your line is open. Please go ahead.
Yes. Hi. Can you hear me?
Yes, we can hear you.
Yes, we can hear you.
Thank you. Apologies. Thank you for the presentation. I have two quick questions. First, on this Ghana situation. I know that this is like less than 15% of your EBITDA, but I would like to check that this deterioration in Ghanaian cedi which happened like from the end of September. You mentioned that you expect it to be like a small negative effect in Q4, which will be fixed by this CPI escalators from January. Just want to check to see if my understanding is correct that this FX weakness is expected just to be cured by this by the CPI escalation from January. Like my first question.
My second question on funding mix and covenants. You will use like a mix of your like existing facilities, if I understood you correctly. You have access to your term loan and RCF for $70 million. But could you remind us about your covenants? You mentioned that you still have a headroom under your facilities, but what is your next year covenants? Do you have like any tightening in your covenants in year 2023, 2024? Just want to understand any limitations in terms of the covenants next year. Thank you. Thank you very much.
Manjit Dhillon, do you want to take those?
Yes. On the first one around Ghana, in short, yes, what we will see is that, with the FX increasing as the years progress, versus when our CPI escalator first kicks in in January, there has been a bit of a widening. What we will find is that when the escalator kicks in again in January 2023, we'll recoup some of that. In general, we'll be able to get a bit of a protection against the FX piece in Ghana. I'd also add though that in Ghana, the way our structure is set up, there is actually a portion of our revenues linked to US dollars and often received in US dollars.
There's also an added protection against the overall FX movement that we're seeing at the moment, and that's roughly around 20%-25% of our revenues there. In addition to the CPI, we also receive a portion of our revenues there in US dollars. In terms of the mix of funding, yes. We ultimately have at the moment undrawn debt facilities at the group level. We have a $200 million term loan, we have a $70 million RCF. We also have cash on balance sheet in excess of $300 million. We also have some local funding lines as well. For the funding in Oman, we utilize in general a mixture of either the cash on balance sheet plus term loan, either at group or at the local level.
That'll be the way that we'll be financing the transaction. Finally on covenants. We don't provide any covenant disclosure, but what I would say is that when we talk about our target range between 3.5-4.5, our covenants are in excess of that, and I'd say at least a turn in excess of that. In general, we're operating from a covenant perspective in excess of five. Yes, I think we feel very comfortable in that perspective.
Okay. Thank you. Thank you very much for the clarification. Thank you.
You're welcome. Thank you.
As a final reminder, t his concludes today's Q&A session. I'll now hand back to Tom for any concluding remarks.
Thank you very much, Adam. Thank you everyone for dialing in today. Thanks for your questions. As always, if you've got any follow-ups, you know where we are, so please get in contact. I'm happy to jump on a one-on-one call with people. Do let us know. Very much look forward to talking to everyone in March when we'll be releasing our full year 2022 as well as providing more guidance for our 2023 year. Thank you, everyone. Have a good day.