Telecom Egypt plans to obtain $500M loan

CAIRO – 3 October 2021: Telecom Egypt plans to obtain a $500 million co-financed loan, which will be the company's first return to the global debt markets since 2018, Sources told CNBC Arabia Sunday.

The company has appointed First Abu Dhabi Bank and Mashreq Bank to arrange the planned loan, which is expected to have a six-year term.

The loan, which the company works to obtain, gives the banks a margin of about 3.25 percent over the US Libor rate.

The loan is expected to be used to fund the company's short-term debt as well as capital spending, according to CNBC.

The Egyptian government owns 80 percent of Telecom Egypt, and it is the oldest telecom company in the region. It was established about 160 years ago, and it provides all terrestrial voice communications services, Internet services and mobile services.

Telecom Egypt operates within the telecommunication services sector, focusing on integrated telecommunication services. It has subsidiaries operating across British Islands, Western Europe, Northern Africa and Middle East.