EGYPT – Telecom Egypt, Egypt’s primary telephone company, has signed an agreement to secure a US$200 million medium-term loan from Banque Misr, UAE.
Banque Misr, UAE, is the Mandated Lead Arranger and the Facility Agent. Given the favorable terms and conditions of this new facility, Telecom Egypt will use the loan to refinance its existing short-term facilities.
This loan comes promptly as Telecom Egypt pursues a refinancing strategy to reduce borrowing costs, assure adequate liquidity, and increase financial flexibility.
In 2023, Telecom Egypt strategically procured and settled its CapEX requirements upfront to hedge against expected FX fluctuations in 2024 and other unforeseeable risks.
It is also worth highlighting that this five-year amortizing loan will be settled from the collection of Telecom Egypt’s foreign currency revenues.
“We are pleased to cooperate with Banque Misr, UAE, on this financing facility. This new US$200 million medium-term loan facility is a testament to the confidence of respected financial institutions, such as Banque Misr, in Telecom Egypt’s strong operations,” Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt, commented.
“This loan will complement our existing liquidity base and enable us to repay installments in line with the cash flow generation from our different foreign currency revenue streams.
“In addition, we are confident that our solid financial and operational plans will deliver exceptional results and continued organic growth, allowing us greater cash flow flexibility, continued product development, enhanced service to all of our customers, and propel our future business growth.”
Khaled El Bialy, Chief Executive Officer at Bank Misr, UAE, expressed his delight in supporting Telecom Egypt in its pursuit of better financial management and cash flow flexibility.
“This finance facility cements our strategic relationship with TE and reflects Banque Misr’s commitment to a long-term partnership with the company.”
Telecom Egypt recently entered into a memorandum of understanding (MoU) with Tejas Networks to enhance Egypt’s telecommunication research and development, manufacturing facilities, and skill development.
Tejas Networks, an Indian company specializing in optical, broadband, and data networking products, plans to apply its experience from the Bharatnet (Rural Broadband Project) and NKN (National Knowledge Network) projects in Egypt.
As part of this partnership, Tejas will also set up technical support services in Egypt to assist customers locally and across the wider Africa and Middle East region.
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