Telecom Egypt signed a $369 (EGP 18 billion) syndicated loan facility this week, describing it as a critical step toward stabilising the company’s cash flow and increasing its financial flexibility.

The syndicate is made up of 13 institutions, led by Commercial International Bank – Egypt and Banque Misr as the first mandated lead arrangers and bookrunners, and the National Bank of Egypt as the mandated lead arranger and bookrunner.

Telecom Egypt will use this new seven-year syndicated credit to refinance its current short-term EGP facilities.

According to the firm, the refinancing comes at an important strategic point, aligning with Telecom Egypt’s continued efforts to improve cash flow, ensure adequate liquidity, and increase financial flexibility as the company executes its long-term growth goals.

Mohamed Nasr, managing director and CEO of Telecom Egypt, commented: “The timely refinancing of our short-term EGP debt into a new facility with attractive terms is a significant milestone in strengthening our financial position.

“We are confident that our ongoing debt restructuring program, which we initiated last May—coupled with our focused efforts to optimise capex allocation—positions us well to further enhance our financial position, capitalize on future opportunities, and continue to deliver value to our shareholders.

“The participation of leading banks in this transaction reflects their strong confidence in Telecom Egypt’s financial stability and growth prospects, further validating our strategic direction and long-term vision.”

Source: IT Web