Al Mal-
Commercial International Bank - Egypt (CIB), Banque Misr and National Bank of Egypt(NBE) have successfully arranged a EGP 18 billion syndicated financing for 7 years for Telecom Egypt, the leading telecom company in Egypt. The banking consortium includes 13 banks, led by Commercial International Bank - Egypt (CIB) and Banque Misr as the initial lead arrangers and Finance Marketer, and National Bank of Egypt as the lead arranger and Finance Marketer.
The legal advisors “Zaki Hashem Office” (the lenders’ advisor) and “Edsero - Ragy Soliman & Partners” (the borrower’s advisor) were appointed to complete the financing process.
The Commercial International Bank - Egypt (CIB) is acting as the financing agent in the syndicated financing, participating with a share of EGP 4.875 billion, Banque Misr is acting as the account bank with a share of EGP 4.875 billion, while the National Bank of Egypt’s share amounted to EGP 2.50 billion. The main purpose of the financing is to strengthen the company’s financial structure.
This joint financing arrangement comes in support of the telecommunications sector in Egypt and to improve the level of services provided by telecommunications companies operating in the Egyptian market. It also confirms the capabilities of the Commercial International Bank - Egypt (CIB), Banque Misr and the National Bank of Egypt and reflects their accumulated competencies and experience in arranging this type of financing for many vital sectors in the Egyptian economy.
This joint financing is the largest bank financing arranged by Egyptian banks for a company operating in the telecommunications sector in Egypt.
Hisham Okasha, CEO of Banque Misr, stated: “Banque Misr always works to support and finance various business sectors, which positively reflects on supporting the Egyptian economy. Banque Misr’s role in leading this banking alliance comes from its belief in the potential of the communications and information technology sector in Egypt, which has clearly flourished over the past years, and the bank’s keenness to support the state’s efforts to advance all economic sectors, by enhancing the bank’s role in supporting economic development and contributing to financing national projects.
Okasha also praised the professionalism of the specialized teams working in the relevant sectors in the banking alliance and facilitating all joint financing procedures, as they played an effective role in completing this financing successfully and efficiently in its various stages. He also praised the fruitful cooperation from the banks of the banking alliance, which resulted in the successful completion of the financing in one of the most important vital sectors. Amr El-Ganainy, Deputy CEO and Managing Director of the Commercial International Bank - Egypt (CIB), expressed his pride in the role of the Commercial International Bank as an arranger, marketer and agent for this joint financing, directed in favor of one of the largest leading telecommunications companies in the Egyptian market, which represents one of the main pillars of the advancement of the telecommunications sector in Egypt, as the main interest of the Commercial International Bank is to support and finance the vital sectors that represent the main link to help advance various other economic sectors. He stated that the communications and information technology sector is one of the fastest growing sectors in the world, especially in Egypt, which is witnessing major digital transformations aimed at improving the quality of services and enhancing digital transformation, adding that this financing will not only contribute to enhancing the infrastructure and technological capabilities of Telecom Egypt, but will also have an impact on the entire economy, providing new job opportunities and enhancing our competitive capabilities in the region.
Mohamed El-Etreby, CEO of the National Bank of Egypt, stated that the bank is always keen to arrange the necessary joint financing for infrastructure projects, especially the communications sector, which is the cornerstone of building a sustainable digital economy, enhancing financial inclusion, and strengthening Egypt's position regionally and internationally as a center for information technology, knowledge, and innovation, which contributes to achieving Egypt's goals and vision for sustainable development 2030.
El-Etreby expressed his happiness with the fruitful cooperation between the banking alliance and Telecom Egypt in arranging this joint financing, which enhances the company's liquidity management and allows it flexibility in paying payments for the company's operations, which confirms the banking sector's ability to contribute effectively to providing appropriate financing solutions that help companies develop their businesses.
Mohamed Nasr, Managing Director and CEO of Telecom Egypt, stated: “We are pleased to obtain this long-term loan that will enable us to restructure our short-term obligations, thus strengthening the company’s financial position. This loan will contribute to achieving greater financial flexibility and will also enable us to achieve greater alignment between our obligations and financial resources. I am confident that the debt restructuring program, which began implementation last May, in addition to efforts to increase the efficiency of capital expenditure allocation, will strengthen our financial position and enable us to benefit more from future opportunities and continue to maximize shareholder wealth.” He added: “The participation of these major banks in the loan reflects the great confidence in Telecom Egypt’s financial stability and its ability to achieve further growth in the future in line with our strategic direction and long-term vision. The financing contract was signed in the presence of the leaders of the banks participating in the financing, along with the Managing Director and CEO of Telecom Egypt, in addition to members of the work teams from all parties.