Vodafone Egypt Oks Banking Consortium’s Offer for EGP4 bln Loan

Vodafone Egypt approved on consortium agreement for seven banks operating in the Egyptian market in order to arrange a loan with EGP4 billion so as to modernize the infrastructure of the company.

An official source in Vodafone has informed Amwal Al Ghad agreed to provide the required financing by the end of the current month such as Banque Misr, Commercial International Bank – Egypt (CIB), HSBC, Bank of Alexandria, Barclays, Qatar National Bank Al-Ahly (QNB), BNP Paribas to arrange EGP4bn loan. Vodafone will obtain EGP3 billion directly from the 7 lenders; while the remaining one billion pounds are postponed to be received later within two years. 

The source explained that the value of loan that will be pumped in new investments for Vodafone’s infrastructure and the improvement of Towers strengthening Services, asserting that it would not allocate part of loan for financing the integrated operator license and the three mobile phone operators has not seen the price so far.

Senior source in Banque Misr explained that the seven banks agreed to arrange the loan so that each share of bank will be determined in the coming days.

The business results of the first half of the fiscal year of Vodafone revealed that Vodafone achieved EGP6.6 billion revenues, noting that the profit’s volume before taxes and interests up EGP2.8 billion.

The financial statements of Vodafone explained that the total operating profits of the company reached EGP1.4 billion, capital expenditure of is around EGP800 million, while the total free cash flow up EGP2 billion.

A report issued from the Information and Communication Technology Ministry revealed that the numbers of mobile phone users in Egypt boosted to 97 million at the end of September 2013.

The indexes of the Ministry explained that the numbers of users increased by 41.4 million, in order to capture 42.2% of mobile phone market and ranked first as the most operator seizing subscribers.