Telecom Egypt's board approves the acquisition of MENA Cable and obtaining long-term USD facilities
Telecom Egypt announces that its Board of Directors has approved two strategic decisions to increase its return on investment, and provide the liquidity to facilitate the implementation of its business plan.
First resolution: The acquisition of MENA Cable by a subsidiary of Telecom Egypt The BoD approved the acquisition of Middle East and North Africa Submarine Cable (MENA Cable) by a 50% owned subsidiary (Egyptian International Submarine Cables Company) with a total enterprise value of USD 90 million to be financed through a shareholder loan from Telecom Egypt.
Second resolution: Obtaining USD credit facilities The BoD approved obtaining the following credit facilities in USD with the aim of 1) converting short-term USD overdrafts into longer-term loans to enable the company to repay installments in line with its cash flow generation, 2) providing flexibility to finance its working capital needs and 3) availing a lower interest financing option to invest in its 4G network:
5-year syndicated loan of up to USD 500mn arranged by Mashreq Bank and First Abu Dhabi Bank.
Renewable 12-month short-term credit facility provided by Abu Dhabi Islamic Bank and African Bank for Import and Export with a maximum of USD 200mn.
4-year vendor finance agreement with Huawei with a limit of USD 200mn and a grace period of 24 months