Telecom Egypt Secures USD 200m Loan from Banque Misr, UAE

Telecom Egypt signed a USD 200m medium-term loan agreement with Banque Misr, UAE to refinance short-term facilities, reduce borrowing costs, and increase financial flexibility.

Telecom Egypt, the country’s full-service telecom operator, signed an agreement to secure a USD 200m medium-term loan from Banque Misr, UAE. Banque Misr, UAE is the Mandated Lead Arranger and the Facility Agent.

Given the favorable terms and conditions of this new facility, Telecom Egypt will use the loan to refinance its existing short-term facilities. This loan comes at a timely manner as Telecom Egypt pursues a refinancing strategy to reduce its borrowing costs, assure adequate liquidity, and increase its financial flexibility. In 2023, Telecom Egypt strategically procured and settled its CapEX requirements upfront to hedge against expected FX fluctuations in 2024, and other unforeseeable risks.

It is also worth highlighting that this five-year amortizing loan will be settled from the collection of Telecom Egypt’s foreign currency revenues.

We are pleased to be cooperating with Banque Misr, UAE for this financing facility. This new USD 200m medium-term loan facility is a testament to the confidence of respected financial institutions, such as Banque Misr, in Telecom Egypt’s strong operations. This loan will complement our existing liquidity base and enable us to repay installments in line with the cash flow generation from our different foreign currency revenue streams. In addition, we are confident that our solid financial and operational plans will deliver exceptional results and continued organic growth, allowing us greater cash flow flexibility, continued product development, enhanced service to all of our customers, and propel our future business growth.

Mohamed Nasr, Managing Director and Chief Executive Officer, Telecom Egypt

We are delighted to support Telecom Egypt in their pursuit for better financial management and cash flow flexibility. This finance facility cements our strategic relationship with TE and reflects Banque Misr’s commitment to a long term partnership with the company.

Khaled El Bialy, Chief Executive Officer at Bank Misr, UAE

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