Introduction

Telecom Egypt has secured a syndicated loan totaling EGP 18 billion ($370 million) to strengthen its financial position and enhance liquidity as it advances its strategic growth initiatives. This move is part of the company’s broader financial restructuring plan, aimed at supporting long-term development and stability in Egypt’s rapidly evolving telecommunications sector.

A Strategic Financial Boost Led by 13 Banks

The financing was arranged by a syndicate of 13 banks, with Commercial International Bank of Egypt (CIB) and Banque Misr acting as the initial Mandated Lead Arrangers and Bookrunners. The National Bank of Egypt also joined as a Mandated Lead Arranger and Bookrunner. This seven-year syndicated facility will refinance Telecom Egypt’s existing short-term Egyptian Pound (EGP) obligations, allowing the company to improve its cash flow and enhance overall financial flexibility.

Enhancing Liquidity and Supporting Long-Term Growth

Telecom Egypt’s CEO, Mohamed Nasr, emphasized the importance of the loan in bolstering the company’s financial strategy. “Refinancing short-term EGP debt through this facility will streamline our financial structure and support liquidity, aligning our liabilities with cash flow. Our ongoing debt restructuring initiative, launched last May, coupled with optimized capital expenditure, will further reinforce our financial stability, positioning us to pursue growth opportunities and deliver shareholder value.”

Prior Debt Restructuring and Strategic Growth Initiatives

This loan follows an earlier $200 million medium-term loan secured by Telecom Egypt from Banque Misr in the UAE in May 2024. The five-year loan, structured for repayment in foreign currency, was similarly aimed at renewing short-term facilities to support the company’s financial flexibility. Telecom Egypt’s progressive debt restructuring reflects its commitment to sustainable financial management while investing in critical infrastructure.

Building a Foundation for Egypt’s Digital Future

Mohamed El-Etreby, CEO of the National Bank of Egypt, highlighted the bank's role in providing financing for critical infrastructure projects within the information and communications technology (ICT) sector. The syndicate’s backing of Telecom Egypt aligns with Egypt’s Vision 2030 and Sustainable Development Goals (SDGs), aimed at fostering a robust digital economy, advancing financial inclusion, and solidifying Egypt’s status as a regional ICT hub.

Telecom Egypt’s Expansion into 5G and Partnerships for Innovation

In January 2024, Telecom Egypt became the first mobile operator in the country to secure a 5G license, after investing $150 million in a 15-year license. This move comes on the back of a 48% increase in net profits reported in the first nine months of 2023. To support its 5G rollout, Telecom Egypt partnered with Nokia to introduce 5G-ready services in key Egyptian cities, including Cairo, Alexandria, Aswan, Giza, and Luxor, positioning the company to lead Egypt’s connectivity and digital transformation.