Telecom Egypt has secured a syndicated loan amounting to EGP 18 billion ($370 million) to bolster its financial flexibility and improve its monetary inflows.
The syndicate consists of 13 banks, led by Commercial International Bank of Egypt (CIB) and Banque Misr as the initial Mandated Lead Arrangers and Bookrunners, and the National Bank of Egypt as the Mandated Lead Arranger and Bookrunner.
The telco wants to use this new seven-year syndicated facility to refinance its short-term EGP facilities.
Per the telco, the refinancing comes at an important strategic point, aligning with its efforts to improve cash flow, ensure adequate liquidity, and improve financial flexibility as the company executes its long-term growth plans.
Mohamed Nasr, CEO of Telecom Egypt, highlighted that refinancing the company’s short-term EGP debt into a new facility will enhance financial flexibility and align liabilities with income. He said the ongoing debt restructuring programme, launched last May, alongside efforts to optimise capital expenditure, will strengthen their financial position and enable the pursuit of future opportunities, ultimately benefiting shareholders.
In May 2024, Telecom Egypt secured a $200 million medium-term loan from Banque Misr in the UAE to renew existing short-term facilities. The telco stated that the five-year amortising loan would be repaid using foreign currency profits.
Mohamed El-Etreby, CEO of the National Bank of Egypt, highlighted the bank’s commitment to syndicating financing for key infrastructure projects in information and communications technology. This effort aims to support a sustainable digital economy, enhance financial inclusion, and establish Egypt as a regional IT hub, aligning with Egypt’s Vision 2030 and Sustainable Development Goals.
In January 2024, Telecom Egypt became the first mobile operator to secure a 5G licence in the country after being granted a 15-year licence for $150 million to operate the network. This comes after the telecom reported a 48% net profit in the first nine months of 2023.
Subsequently, Nokia partnered with the telco to bring 5G technology to Egypt. The collaboration will see 5G-ready services enter Egyptian cities, including Alexandria, Aswan, Cairo, Giza, and Luxor.
