Telecom Egypt to get UAE banks-led $500 mln loan before year-end

Telecom Egypt, the country’s largest internet provider, will secure a loan of $500 million arranged by First Abu Dhabi Bank and Mashreqbank before the end of this year.

“We expect to receive the dollar loan before the end of this year. The money will finance the company’s investment activities to improve infrastructure and mobile internet services.” Chief Executive Ahmed El Beheiry told Amwal Al Ghad on Tuesday.

The five-year facility is the latest of a number of loans Telecom Egypt secured to finance capital and operating expenditure over the past 12 months.

Telecom Egypt’s board approved in May to secure up to $900 million in credit facilities, which include First Abu Dhabi Bank and Mashreqbank’s $500 million syndicated loan, El Beheiry said.

Telecom Egypt is 80 percent state-owned, with the remainder of its shares listed on the Egyptian and London stock exchanges.

“Telecom Egypt recently obtained a short-term renewable facility worth $200 million from Abu Dhabi Islamic Bank and the African Export-Import Bank (Afreximbank) over 12 months,” El Beheiry said.