Telecom Egypt in talks to increase 4G loan to 13 bln pounds

Big 5

State-owned landline monopoly Telecom Egypt is in talks with banks about raising a loan designated to pay for the recently-acquired 4G licence to 13 billion Egyptian pounds ($825.4 million) from 8 billion pounds.

The banking alliance, arranging Telecom Egypt’s loan, consists of the National Bank of Egypt (NBE), Commercial International Bank (CIB), QNB ALAHLI, and Crédit Agricole Egypt, with the possibility of witnessing Banque Misr’s participation in the coming period.

The loan will be over eight years, to go for financing plans to reinforce the company’s infrastructure to offer mobile services and pay for the 4G licence.

In August, Telecom Egypt acquired the country’s first 4G mobile licence at a cost of 7.08 billion Egyptian pounds paving the way for it to become the fourth mobile provider in Egypt. It had so far paid 5.2 billion pounds for the licence, 50 percent of which was paid in dollars. The rest will be paid over four years.

The licence is valid for 15 years and services must be made available within six months.

The company has already secured a bridge loan ranging between 2 billion and 3 billion pounds from the NBE and CIB to pay for the first tranche of the 4G licence.