Cairo, October 28, 2024: Banque Misr, Commercial International Bank – Egypt (CIB), and the National Bank of Egypt (NBE) have successfully arranged an EGP 18 billion syndicated financing facility for Egyptian Telecom Company, the leading telecommunications company in the country. This financing is structured over a period of seven years. The banking consortium consists of 13 banks, with Banque Misr and CIB serving as the initial lead arrangers and bookrunners, while NBE is designated as the lead arranger and bookrunner. To facilitate the financing process, Zaki Hashem Law Firm has been appointed as the Lenders’ Advisor and ADSERO-Ragy Soliman & Partners as the Borrower’s Advisor.
Banque Misr is serving as the account bank with a contribution of EGP 4.875 billion. The Commercial International Bank – Egypt (CIB) is acting as the financing agent, also contributing EGP 4.875 billion in the co-financing arrangement. The National Bank of Egypt is contributing EGP 2.50 billion. The primary purpose of this financing is to strengthen the company’s financial structure.
This joint financing arrangement aims to support the telecommunications sector in Egypt and enhance the quality of services provided by telecommunications companies operating in the country. It highlights the capabilities of Banque Misr, the Commercial International Bank - Egypt (CIB), and the National Bank of Egypt, showcasing their extensive experience in organizing financing for essential sectors of the Egyptian economy. Notably, this joint financing represents the largest bank financing secured by Egyptian banks for a company in the telecommunications sector in Egypt.
Mr. Hesham Okasha, CEO of Banque Misr, stated, “Banque Misr is committed to supporting and financing various business sectors, which positively impacts the Egyptian economy. Our participation in arranging financing within the banking alliance stems from our belief in the potential of Egypt's communications and information technology sector, which has flourished in recent years. The bank is also dedicated to supporting the state’s efforts to advance all economic sectors by enhancing its role in economic development and contributing to the financing of national projects.”
Okasha praised the professionalism of the specialized work teams within the banking alliance, highlighting their crucial role in facilitating all joint financing procedures. Their effective efforts contributed to the successful and efficient completion of the financing at various stages. He also acknowledged the fruitful cooperation among the banks in the alliance, which led to the successful completion of financing in one of the most vital sectors.
Mr. Amr El Ganainy, Deputy CEO and Managing Director of Commercial International Bank - Egypt (CIB), expressed pride in CIB's role as the arranger, marketer, and agent for a significant joint financing initiative. This initiative is directed towards one of the largest telecommunications companies in the Egyptian market, which serves as a key pillar for the advancement of the telecommunications sector in Egypt. CIB is primarily focused on supporting and financing vital sectors that act as critical links in promoting the growth of various other economic sectors.
He stated that the ICT sector is one of the fastest-growing sectors in the world, particularly in Egypt. The country is undergoing significant digital transformations aimed at improving service quality and advancing digital capabilities. He added that this financing will not only enhance the infrastructure and technological capabilities of Telecom Egypt but will also positively impact the overall economy by creating new job opportunities and boosting our competitive edge in the region. Mr. Mohamed El-Etreby, CEO of the National Bank of Egypt, emphasized that the bank is committed to arranging the necessary joint financing for infrastructure projects, especially in the telecommunications sector. This sector is fundamental to building a sustainable digital economy, promoting financial inclusion, and reinforcing Egypt’s position as a regional and international hub for information technology, knowledge, and innovation. This effort aligns with Egypt’s goals and vision for sustainable development by 2030.
El-Etreby expressed his satisfaction with the successful collaboration between the banking alliance and the Egyptian Telecom Company in securing this joint financing. This arrangement enhances the company’s liquidity management and provides flexibility in meeting its operational payment obligations. It also demonstrates the banking sector's capacity to effectively provide suitable financing solutions that support companies in growing their businesses.
Mr. Mohamed Nasr, Managing Director and CEO of Egyptian Telecom Company, stated: “We are pleased to secure this long-term loan, which will allow us to restructure our short-term obligations and strengthen the company’s financial position. This loan will enhance our financial flexibility and help align our obligations with our financial resources. I am confident that the debt restructuring program, which we began implementing last May, along with our efforts to improve the efficiency of capital expenditure allocation, will further fortify our financial standing. This will enable us to capitalize on future opportunities and continue maximizing shareholder value.” He added, “The participation of these major banks in this loan underscores their strong confidence in Telecom Egypt’s financial stability and our ability to achieve further growth in line with our strategic direction and long-term vision.”
The financing contract was signed in the presence of bank leaders, the Managing Director and CEO of Telecom Egypt, and members from all participating work teams.
