Telecom Egypt acquires LE 18B 7-year loan to improve monetary inflows

Cairo – October 29, 2024: Telecom Egypt has secured of a long-term loan amounting to LE 18 billion, facilitated by a consortium of 13 banks, as it aims to bolster the company’s financial flexibility and improve its monetary inflows, according to a statement from the company.

The seven-year loan will primarily be used to refinance existing short-term obligations in Egyptian pounds, helping the company align its liabilities more closely with its income.

Telecom Egypt's CEO, Mohamed Nasr, stated that the refinancing of their short-term LE debt into a new facility with favorable terms is a crucial step in enhancing the company’s financial standing. This long-term facility provides us with greater financial flexibility and helps align our liabilities with our revenue streams more effectively, he added.

The loan consortium is led by the Commercial International Bank (CIB) and Banque Misr, with the National Bank of Egypt (NBE) serving as the mandated lead arranger.

Amr El-Ganainy, CIB's deputy CEO, expressed pride in the bank's role, emphasizing the significance of this financing for one of Egypt’s largest telecommunications entities.

Telecom Egypt has demonstrated strong performance recently, reporting a 35 percent year-on-year increase in consolidated revenues, reaching LE 38 billion in the first half of 2024.

Earlier this year, the company acquired Egypt's first 5G license in an agreement valued at $150 million with the National Telecommunications Regulatory Authority (NTRA).

The company's WE Data brand is the leading internet service provider in the market, holding an impressive 80 percent market share, along with a 7 percent share of the mobile market, according to a 2023 report.