Business

Telecom Egypt Secures $370 Million Syndicated Loan to Boost Financial Stability

0

(Ecofin Agency) – Since May, the incumbent operator has actively worked to optimize its cash position. As a key driver of Egypt’s digital transformation, the company is bolstering its financial health to benefit both the nation and its shareholders. 

Telecom Egypt announced, on October 28, the successful arrangement of an EGP 18 billion ($369.6 million) syndicated loan facility. It aims to refinance the telecom company’s existing short-term EGP facilities and enhance its financial flexibility and cash flow. The facility, arranged with 13 leading banks, was spearheaded by Commercial International Bank – Egypt (CIB) and Banque Misr as the Initial Mandated Lead Arrangers and Bookrunners, with the National Bank of Egypt as an additional Lead Arranger.

Telecom Egypt CEO, Mohamed Nasr, emphasized the importance of the financing, noting, “The timely refinancing of our short-term EGP debt into a new facility with attractive terms is an important step in strengthening our financial position. We are pleased to have secured this long-term facility, which not only provides us with greater financial flexibility but also enables us to better align our liabilities with our revenues .”

He added, “We are convinced that our ongoing debt restructuring program, which we launched last May, combined with our focused efforts to optimize the allocation of capital expenditure, positions us well to further improve our financial position, capitalize on future opportunities, and continue to deliver value to our shareholders.”

The refinancing comes at a strategic time, aligning with Telecom Egypt’s ongoing efforts to improve cash flow, ensure adequate liquidity, and enhance financial flexibility as the company executes its long-term growth plans. The facility also underlines Telecom Egypt’s commitment to prudent financial management and strengthens its ability to navigate challenging market conditions while reducing associated risks and ensuring sustainable growth.

Mohamed Nasr points out that “the participation of leading banks in this transaction reflects their strong confidence in Telecom Egypt’s financial stability and growth prospects, further validating our strategic direction and long-term vision.”

The financing aligns with the Ministry of Communication and Information Technology’s ICT 2030 Strategy which aims to position Egypt as a telecommunications and technology hub with a strong presence in both regional and global markets. By ensuring liquidity and operational flexibility, Telecom Egypt can better support infrastructure projects that may facilitate an increase in digital economy contributions to GDP. The National Telecom Regulatory Authority reveals that in 2019, Egypt’s ICT sector contributed EGP 93.4 billion to the national GDP, accounting for around 4% of the total GDP—a 14.3% increase compared to its contribution in 2018.

The seven-year loan facility will enable Telecom Egypt to refinance its existing short-term debt, supporting the company’s ongoing cash flow improvements and liquidity needs as it continues to expand in line with its growth strategy.

Hikmatu Bilali

Source

WHO, Africa CDC support 17 countries to develop mpox vaccination plans

Previous article

Mauritania’s SMH takes critical role in growth story 

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Business