Etisalat Misr signs with 10 banks 4G loan deal

Etisalat Misr, the Egyptian unit of UAE telecommunications operator has signed Thursday a syndicated loan agreement worth 6 billion Egyptian pounds ($317 million) with a consortium of 10 banks.

The loan is designated to finance the local currency component 4G licence fees, new frequencies, as well as operational and capital costs for Etisalat Misr.

The consortium involves the National Bank of Egypt (NBE), Commercial International Bank (CIB), Banque Misr, QNB Al-Ahli, HSBC Egypt, Abu Dhabi Islamic Bank-Egypt (ADIB), AlexBank, National Bank of Kuwait-Egypt (NBK), Crédit Agricole Egypt, and Emirates NBD Bank-Egypt.

NBE, CIB, and Banque Misr will act as the main lead arranger for Etisalat Misr’s loan; while QNB Al-Ahli, HSBC Egypt, and ADIB-Egypt will be the bookrunners.

The syndicated financing is divided into two tranches; the first will be in form of a seven-year reducing revolving loan worth 3.5 billion pounds; while the second will be a five-year loan worth 2.5 billion pounds.

In November, On Sunday, Etisalat Misr secured a licence to offer fourth-generation mobile phone services after lengthy negotiations with the government.

Below a table demonstrates the contribution of each bank to Etisalat Misr’s loan: