Egypt’s Orascom Telecom (ORTE.CA) said on Thursday it would receive a $2.5 billion loan from its majority shareholder, Russia’s Vimpelcom so it can develop networks in Bangladesh and other markets.
“We are receiving a credit facility worth $2.5 billion from Vimpelcom for five years at an interest rate of 12.5 percent,” Chief Executive Ahmed Abou Doma said in a conference in Cairo. “We need the loan to get liquidity to develop our networks, especially in Bangladesh.”
Abou Doma said the firm had a shortage of liquidity that was mainly caused by its inability to repatriate profits from lucrative Algerian unit Djezzy, which has been in a long-running dispute with the government there.
This news has been reported by Reuters.