Telecom Egypt ups 4G loan to $901 mln

A loan provided to finance Telecom Egypt’s 4G mobile plans has been raised to 8 billion Egyptian pounds ($901 million) from 5 billion pounds, senior banking sources told Amwal Al Ghad on Thursday.

An alliance consisting of National Bank of Egypt (NBE), Commercial International Bank (CIB), and QNB ALAHLI has approved to secure Telecom Egypt’s loan, the sources said.

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

The three banks have already provided Telecom Egypt a bridge loan ranging between 2 and 3 billion pounds to pay the first tranche of the 4G licence, the sources said.

Telecom Egypt announced in a press conference on Wednesday that it 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 company told reporters.

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