(MENAFN- Daily News Egypt) A consortium of 13 Egyptian banks has provided Telecom Egypt, the country's leading telecommunications company, with a seven-year loan worth EGP 18bn. The financing package is the largest ever provided by Egyptian banks to a telecommunications company.
The Commercial International bank (CIB) and Banque Misr are the joint lead arrangers and underwriters, while the National Bank of Egypt (NBE) also serves as a lead arranger and underwriter. Zaki Hashem & Partners acted as legal advisors for the lenders, while Adsdero – Ragi Suleiman & Partners represented the borrower.
CIB acted as the facility agent, contributing EGP 4.875bn, while Banque Misr acted as the account bank, also contributing EGP 4.875bn. NBE contributed EGP 2.5bn.
The loan aims to strengthen Telecom Egypt's financial position and support the growth of the telecommunications sector in Egypt.
“Banque Misr is always committed to supporting and financing various business sectors, positively impacting the Egyptian economy,” said Hisham Okasha, Chief Executive Officer of Banque Misr.“Our participation in leading this banking consortium reflects our belief in the potential of the telecommunications and information technology sector in Egypt, which has witnessed significant growth in recent years. It also demonstrates our commitment to supporting the government's efforts to advance all economic sectors by strengthening the bank's role in driving economic development and contributing to the financing of national projects.”
Okasha commended the professionalism of the teams involved in the financing process and the collaboration among the consortium banks.
“CIB is proud to have acted as arranger, underwriter, and facility agent for this joint financing directed towards one of the leading telecommunications companies in the Egyptian market,” said Amr El-Ganainy, Deputy Chief Executive Officer and Managing Director of CIB.“Telecom Egypt is a key pillar in driving the telecommunications sector in Egypt, and CIB is dedicated to supporting and financing vital sectors that serve as the primary link in advancing various other economic sectors.”
El-Ganainy noted that the telecommunications and information technology sector is one of the fastest-growing sectors globally, especially in Egypt, which is undergoing significant digital transformations. He added that this financing will not only contribute to strengthening Telecom Egypt's infrastructure and technological capabilities, but will also have a wider impact on the entire economy by creating new job opportunities and enhancing Egypt's competitive advantage in the region.
“National Bank of Egypt is always keen on arranging joint financing for infrastructure projects, especially in the telecommunications sector, which is the cornerstone of building a sustainable digital economy, promoting financial inclusion, and strengthening Egypt's regional and international standing as a hub for information technology, knowledge, and innovation,” said Mohamed El-Etreby, Chief Executive Officer of National Bank of Egypt.“This contributes to achieving Egypt's sustainable development goals by 2030.”
El-Etreby expressed his satisfaction with the productive cooperation between the banking consortium and Telecom Egypt in arranging this joint financing, which enhances the company's liquidity management and provides flexibility in settling its payment obligations. He stressed the banking sector's ability to effectively contribute to providing suitable financing solutions that help companies develop their businesses.
“We are pleased to receive this long-term loan, which enables us to restructure our short-term obligations, thereby enhancing the company's financial position,” said Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt.“This loan will contribute to greater financial flexibility and allows us to achieve greater alignment between our obligations and financial resources. I am confident that the debt restructuring program, which began in May, coupled with our efforts to increase the efficiency of capital expenditure allocation, will strengthen our financial position, enabling us to capitalize on future opportunities and continue to maximize shareholder value.”
He added:“The participation of these major banks in the loan reflects the strong confidence in Telecom Egypt's financial stability and its ability to achieve further growth in the future, aligning with our strategic direction and long-term vision.”
The financing agreement was signed in the presence of representatives from the participating banks, as well as the Managing Director and Chief Executive Officer of Telecom Egypt, along with members of the working teams from all parties involved.
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