Telecom Egypt has successfully secured an EGP 18 billion ($370 million) syndicated loan to strengthen its financial flexibility and optimise cash flow as it continues to expand its footprint in Egypt’s telecommunications sector. The loan, led by a consortium of 13 banks with Commercial International Bank of Egypt (CIB) and Banque Misr as the initial Mandated Lead Arrangers and Bookrunners, as well as the National Bank of Egypt as a Mandated Lead Arranger and Bookrunner, will be used to refinance Telecom Egypt’s short-term facilities.
The seven-year syndicated facility is strategically aligned with Telecom Egypt’s long-term growth goals, enhancing liquidity and aligning the company’s debt structure with its income profile. According to CEO Mohamed Nasr, this refinancing marks a crucial step in Telecom Egypt’s ongoing debt restructuring, a programme initiated last May to strengthen the company’s financial position and fuel future growth. “By refinancing our short-term debt, we are enhancing financial flexibility and ensuring that liabilities better align with our income,” Nasr stated, adding that this move is set to support Telecom Egypt’s long-term plans and increase value for shareholders.
In parallel with this latest facility, Telecom Egypt secured a $200 million medium-term loan in May from Banque Misr in the UAE, dedicated to renewing short-term liabilities. This five-year amortising loan will be repaid through Telecom Egypt’s foreign currency profits, contributing to the company’s goal of improving its balance sheet and maintaining liquidity.
Mohamed El-Etreby, CEO of the National Bank of Egypt, emphasised the importance of syndicating such financing initiatives for crucial infrastructure projects in the telecommunications sector. This move supports Egypt’s Vision 2030 and Sustainable Development Goals, promoting a sustainable digital economy and enhancing Egypt’s regional IT standing. “We are committed to supporting ICT infrastructure projects that drive a sustainable digital economy and financial inclusion, positioning Egypt as a leader in the region,” El-Etreby said.
Telecom Egypt’s Strategic Advances in 5G and Digital Connectivity
In January 2024, Telecom Egypt became the first mobile operator in the country to secure a 5G licence, a landmark 15-year licence acquired for $150 million. This achievement aligns with the company’s vision to bring advanced connectivity to Egypt, following a 48% increase in net profit reported in the first nine months of 2023.
Building on this milestone, Telecom Egypt has partnered with Nokia to bring 5G-ready services to key Egyptian cities, including Cairo, Alexandria, Aswan, Giza, and Luxor. This collaboration will allow the telco to deliver high-speed, low-latency services that are expected to fuel Egypt’s digital transformation and support a growing demand for high-performance connectivity in urban and rural areas alike.
With these financial and technological initiatives, Telecom Egypt is poised to accelerate its position as a telecommunications leader in the region, creating a resilient foundation for growth and a future-proofed network to support Egypt’s evolving digital economy.
