Telecom Egypt secures $500 million loan to support capital expenditure

Telecom Egypt has secured a new $500 million medium-term syndicated loan to be used to support its capital expenditure and refinance existing short-term facilities.

Two banks, First Abu Dhabi Bank and Mashreq Bank were mandated as Joint Coordinators, Underwriters, Bookrunners, and Initial Mandated Lead Arrangers of the facility, similar to the medium-term syndicated loan obtained in October 2018.

First Abu Dhabi Bank is also the Facility Agent for the transaction and Mashreq Bank the designated account bank and the documentation Agent.

Commenting, Adel Hamed, Managing Director and Chief Executive Officer said: “I am very proud that our strong operational and financial performance exhibited during the last three years has boosted the confidence of respected international financial institutions in Telecom Egypt, enabling us to, once again, secure a $500 million syndicated loan with the loan being 2.7 times oversubscribed.”

“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 restructuring of our leverage comes in line with our financing strategy, to deleverage over time, while enhancing our financing cost. We are confident that this facility, along with our growing organic performance and certainty on dividends from associates will translate into a greater cash flow flexibility for the company,” he added

The final syndicate of banks can be found here.