Telecom Egypt signs $500m medium term syndicated loan

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Telecom Egypt has signed a $500million medium-term syndicated loan, which will be used to support its capital and operational expenditure and refinance an existing short-term facility.

First Abu Dhabi Bank PJSC (FAB) and Mashreq Bank PSC (Mashreq) were mandated as Joint Bookrunners and Mandated Lead Arrangers of the facility. FAB is the facility agent for the transaction and Mashreq Bank is the designated Account Bank.

Ahmed El Beheiry, Managing Director and Chief Executive Officer, commented:

“Telecom Egypt’s USD 500mn medium-term syndicated loan was 1.46 more oversubscribed, which reflects the confidence of the respected international financial institutions in the company’s financial and operational strength. Telecom Egypt has previously announced that its board of directors approved obtaining the 5-year syndication arranged by First Abu Dhabi Bank and Mashreq Bank on 10 May 2018. The aim of the facility is to convert our short-term USD overdrafts into longer-term loans to enable the company to repay installments in line with its cash flow generation.

The facility will also ensure the flexibility to finance Telecom Egypt’s working capital needs as well as to invest in its 4G infrastructure. The facility comes in line with our financing strategy, which is to enhance and reduce the financing expenses incurred and drive growth by contributing to the launch of mobile services, the overhauling of the fixed internet infrastructure in Egypt, and the expansion of Egypt’s international network. This will enable our vision of turning Egypt into a digital route and a regional hub to host international content developers in addition to our new direction to expand in IoT services.”