Telecom Egypt, Egypt’s leading telecom operator, today announced a $200m medium-term loan agreement with Banque Misr, UAE. The loan will be used to refinance existing short-term facilities, supporting Telecom Egypt’s ongoing strategy to reduce borrowing costs and enhance financial flexibility, the company announced on Wednesday.
Banque Misr, UAE, will serve as the Mandated Lead Arranger and Facility Agent for the loan. The five-year amortizing loan will be repaid using Telecom Egypt’s foreign currency revenue streams.
“We are pleased to be cooperating with Banque Misr, UAE for this financing facility,” said Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt. “This loan complements our existing liquidity base and enables us to repay instalments in line with the cash flow generation from our different foreign currency revenue streams.”
Nasr emphasized the significance of the loan as a vote of confidence in Telecom Egypt’s robust operations and financial plans, stating, “This new $200m medium-term loan facility is a testament to the confidence of respected financial institutions, such as Banque Misr, in Telecom Egypt’s strong operations.” He expressed optimism that the company’s solid financial and operational plans would drive continued growth and allow for greater cash flow flexibility, product development, and enhanced customer service.
Khaled El Bialy, Chief Executive Officer of Banque Misr, UAE, shared his enthusiasm for the partnership, stating, “We are delighted to support Telecom Egypt in their pursuit for better financial management and cash flow flexibility. This finance facility cements our strategic relationship with TE and reflects Banque Misr’s commitment to a long-term partnership with the company.”
Telecom Egypt’s proactive approach to refinancing and securing capital is underscored by its 2023 strategy of procuring and settling its capital expenditure (CapEx) requirements upfront. This strategic move aimed to mitigate potential foreign exchange fluctuations in 2024 and other unforeseen risks.
