Telecom Egypt has successfully secured a substantial syndicated loan amounting to EGP 18 billion (approximately $370 million) to enhance its financial flexibility and improve its cash flow. This significant financial arrangement involves a syndicate of 13 banks, with Commercial International Bank of Egypt (CIB) and Banque Misr serving as the initial Mandated Lead Arrangers and Bookrunners, and the National Bank of Egypt acting as the Mandated Lead Arranger and Bookrunner.
The telecom giant intends to utilize this new seven-year syndicated facility to refinance its existing short-term EGP facilities. According to Telecom Egypt, this refinancing initiative is strategically timed to align with the company’s efforts to enhance cash flow, ensure sufficient liquidity, and improve financial flexibility as it pursues its long-term growth objectives.
Mohamed Nasr, CEO of Telecom Egypt, emphasized that refinancing the company’s short-term EGP debt into a new facility will significantly enhance financial flexibility and better align liabilities with income. He noted that the ongoing debt restructuring program, which was launched in May, along with efforts to optimize capital expenditure, will strengthen the company’s financial position and enable it to seize 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 its existing short-term facilities. The company stated that this five-year amortizing 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 the information and communications technology sector. This initiative aims to support a sustainable digital economy, enhance financial inclusion, and establish Egypt as a regional IT hub, in alignment with Egypt’s Vision 2030 and Sustainable Development Goals.
In January 2024, Telecom Egypt became the first mobile operator in the country to secure a 5G license, after being granted a 15-year license for $150 million to operate the network. This milestone came after the telecom reported a 48% increase in net profit during the first nine months of 2023.
Following this achievement, Nokia partnered with Telecom Egypt to introduce 5G technology to the country. This collaboration will bring 5G-ready services to several Egyptian cities, including Alexandria, Aswan, Cairo, Giza, and Luxor, marking a significant advancement in Egypt’s telecommunications infrastructure.
