Banque Du Caire Likely To Approve Contribution To Mobinil Loan Today
Banque Du Caire’s executive board will hold a meeting to decide whether to act as a secondary underwriter of the loan offered to the Egyptian Company for Mobile Services (Mobinil) or not.
Sources told Amwal Al Ghad that the money market representatives of the board of directors have given an in-principle agreement to contribute EGP 300 million to the 2.9 billion loan.
The loan arrangers signed the final finance contract with Mobinil last Sunday. The National Bank of Egypt (NBE) will contribute EGP 850 million, Banque Misr (BM) will contribute EGP 650 million, Commercial International Bank (CIB) will contribute EGP 800 million, HSBC Bank will contribute EGP 400 million and National Société Générale Bank (NSGB) will contribute EGP 200 million. The value of contributions approved by NBE and BM will change if Banque Du Caire approves to contribute to the loan.
The loan will be used to expansion of its cellular network and repayment of some of the operator’s debts.
It is worth mentioning that a consortium compromising of NBE, CIB and NSGB offered EGP 2 billion loan to Mobinil last year to which NBE contributed with EGP one billion and CIB and NSGB provided EGP one billion.
