Loan Arrangers Affirm Signing Of Term Sheet..Contradicting Mobinil’s Denial

The National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), National Societe General Bank (NSGB) and HSBC Bank denied Mobinil’s statements claiming not signing the term sheet of the EGP 2.9 billion syndicated loan arranged by such banks.

Three sources said the loan arrangers signed the term sheet with the Egyptian Company for Mobile Services Mobinil at the mid of last July. The banks work currently on getting approvals from their boards of directors. Sources said the banks will sign the final agreement with Mobinil before the end of August.

Sources criticized the Egyptian Exchange Market’s disclosure management that refused to disclose details about the companies listed in the market. Mobinil denied that it signed the term sheet of the syndicated loan at the beginning of this week.

Sources expected NBE expected to contribute with EGP 850 million, Banque Misr to contribute with EGP 650 million, CIB to contribute with EGP 800 million, HSBC to contribute with EGP 400 million and NSGB to contribute with EGP 200 million. Mobinil will use the 7-year loan to finance future local expansions and refinance current debts. A consortium compromising of NBE, CIB and NSGB offered EGP 2 billion loan to Mobinil last year of which NBE contributed with EGP one billion and CIB and NSGB offered EGP one billion.