Telecom Egypt permissions – Creative Commons via Wikimedia
CAIRO – October 24, 2021: Telecom Egypt has announced it has secured a new medium-term syndicated loan of $ 500 million to be used to support its capital spending and refinance existing short-term facilities.
According to Telecom Egypt, First Abu Dhabi Bank PJSC (“FAB”) and Mashreq Bank PSC (“Mashreq”) were appointed as joint coordinators, underwriters, bookkeepers and first principal arrangers mandated of the facility, in the same manner that the medium-term loan union obtained in October 2018.
He added that FAB is also the facility agent for the transaction and Mashreq the designated account bank and documentation agent.
“I am very proud that our strong operational and financial performance over the past three years has strengthened the confidence of respected international financial institutions in Telecom Egypt, enabling us, once again, to secure a syndicated loan of $ 500 million. dollars, the loan being 2.7x oversubscribed, ”said Adel Hamed, Managing Director and CEO of Telecom Egypt.
Hamed added that the purpose of the facility is to convert our short-term USD overdrafts into longer-term loans to allow the company to repay installments in line with its cash generation. Restructuring the company’s leverage is part of our financing strategy, to reduce debt over time, while increasing the cost of financing the company.
“We are confident that this facility, along with our growing organic performance and the certainty of associate dividends will translate into greater cash flow flexibility for the company,” he noted.
The Egyptian government owns 80% of Telecom Egypt, and it is the oldest telecommunications company in the region. It was established about 160 years ago and provides all terrestrial voice communications services, Internet services and mobile services.
Telecom Egypt operates in the telecommunication services sector, focusing on integrated telecommunication services. It has subsidiaries operating in the British Isles, Western Europe, North Africa and the Middle East.