Telecom Egypt secures $500m medium-term syndicated loan to support capital expenditure
Telecom Egypt has secured a new $500million medium-term syndicated loan to be used to support its capital expenditure and refinance existing short-term facilities.
First Abu Dhabi Bank PJSC (“FAB”) and Mashreq Bank PSC (“Mashreq”) were mandated as Joint Coordinators, Underwriters, Bookrunners, and Initial Mandated Lead Arrangers of the facility, similar to the medium-term syndicated loan obtained in October 2018. FAB is also the Facility Agent for the transaction and Mashreq the designated Account Bank and the Documentation Agent.
The final syndicate of banks is as follows:
Joint Coordinators, Underwriters, Initial Mandated Lead Arrangers and Bookrunners:
First Abu Dhabi Bank PJSC
Mashreqbank PSC
Initial Mandated Lead Arrangers
Ahli United Bank BSC
Mandated Lead Arrangers
Abu Dhabi Commercial Bank
National Bank of Kuwait
Arab Banking Corporation BSC
Al Ahli Bank of Kuwait
Arab Bank PLC - Bahrain
Europe Arab Bank
Lead Arrangers
Bank of Jordan
Arrangers
Attijariwafa Bank
Adel Hamed, Managing Director and Chief Executive Officer, commented: “I am very proud that our strong operational and financial performance exhibited during the last three years has boosted the confidence of respected international financial institutions in Telecom Egypt, enabling us to, once again, secure a $500 million syndicated loan with the loan being 2.7x oversubscribed. The aim of the facility is to convert our short-term USD overdrafts into longer-term loans to enable the company to repay installments in line with its cash flow generation. The restructuring of our leverage comes in line with our financing strategy, to deleverage over time, while enhancing our financing cost. We are confident that this facility, along with our growing organic performance and certainty on dividends from associates will translate into a greater cash flow flexibility for the company.”
