State-owned Telecom Egypt secures long-term loan worth EGP 18 bln

Ahram Online , Tuesday 29 Oct 2024

State-owned Telecom Egypt, the country's main telecom service provider, has secured a long-term loan of EGP 18 billion through a banking consortium of 13 banks.

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According to a statement issued by Telecom Egypt, this initiative is part of the company's strategy to balance monetary inflows and enhance financial flexibility.

Telecom Egypt is the biggest telecom services provider in the local market. The company's consolidated revenues increased 35 percent year-on-year in the first half of 2024, reaching EGP 38 billion.

In January, Telecom Egypt secured the first 5G license in Egypt in an agreement worth $150 million with the National Telecommunications Regulatory Authority (NTRA).

WE Data by Telecom Egypt is the most important internet service provider in the country, acquiring 80 percent of the market share. According to a report published by Telecom Egypt in 2023, it also acquires seven percent of the total mobile market.

The consortium is led by the Commercial International Bank (CIB) and Banque Misr, the initial mandated lead arrangers and bookrunners, in collaboration with the National Bank of Egypt (NBE), the mandated lead arranger and bookrunner.

"We are proud of CIB’s role as the mandated lead arranger, bookrunner, and facility agent for this syndicated loan to one of Egypt’s largest and leading telecommunications companies – and a cornerstone in the advancement of the country’s information and communications technology sector," stated Amr El-Ganainy, deputy chief executive officer and managing director of CIB.

Telecom Egypt will utilize this seven-year loan to refinance its current short-term obligations in Egyptian pounds. The statement emphasizes that this strategic step aligns with the company’s efforts to improve its monetary inflows, enhance financial liquidity, and achieve the flexibility necessary for long-term growth plans.

“The timely refinancing of our short-term EGP debt into a new facility with attractive terms is a significant milestone in strengthening our financial position. We are pleased to have secured this long-term facility, which provides us with greater financial flexibility and enables us to align our liabilities with our income better,” stated Mohamed Nasr, the CEO and managing director of Telecom Egypt.

The Egyptian Exchange (EGX) announced in May 2023 that it has completed the second and final tranche of selling a government-owned 10 percent stake in Telecom Egypt.

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