REG - Telecom Egypt S.A.E - Telecom Egypt Refinances Short-Term Facilities

Telecom Egypt Co SAEAnnouncement

28/10/2024 14:30

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RNS Number : 9145J  Telecom Egypt S.A.E  28 October 2024

Telecom Egypt Refinances Short-Term Facilities Through an EGP 18bn Syndicate
Loan from 13 Banks

28 October 2024: Telecom Egypt is pleased to announce the successful signing
of an EGP 18bn syndicated loan facility, a crucial step in rebalancing the
company's cash flow and enhancing its financial flexibility.

The syndicate consists of 13 banks, led by Commercial International Bank -
Egypt (CIB) and Banque Misr as Initial Mandated Lead Arrangers and
Bookrunners, along with the National Bank of Egypt as Mandated Lead Arranger
and Bookrunner.

Telecom Egypt will use this new seven-year syndicated facility to refinance
its existing short-term EGP facilities. The refinancing comes at a strategic
juncture, aligning with Telecom Egypt's ongoing efforts to improve its cash
flow, ensure adequate liquidity, and enhance financial flexibility as the
company executes its long-term growth plans.

This facility also underscores Telecom Egypt's commitment to prudent financial
management and reinforces its ability to navigate challenging market
conditions while reducing associated risks and ensuring sustainable growth.

Mohamed Nasr, Managing Director and Chief Executive Officer 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 pleased to have secured this long-term facility, which not
only provides us with greater financial flexibility but also enables us to
better align our liabilities with our income. We are confident that our
ongoing debt restructuring program, which we initiated last May-coupled with
our focused efforts to optimize 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."

 

 

Hisham Okasha, Chief Executive Officer of Banque Misr, commented:

"Banque Misr is committed to supporting and financing various business
sectors, positively impacting the Egyptian economy. Its entry into this
syndicate underscores its belief in the information and communications
technology sector's potential and in Telecom Egypt's leadership in this
thriving field. The bank is dedicated to advancing all economic sectors by
promoting development and financing national projects. Additionally, I would
like to thank the teams involved in the syndicate for their professionalism
and for facilitating joint financing procedures, which were crucial to
successfully and efficiently completing this financing in its various stages."

Amr El-Ganainy, Deputy Chief Executive Officer and Managing Director of CIB,
commented:

"We are proud of CIB's role as the Mandated Lead Arranger, Bookrunner, and
Facility Agent for this syndicated loan to one of Egypt's largest and leading
telecommunications companies - and a cornerstone in the advancement of the
country's information and communications technology sector. CIB's primary
focus is to support and finance crucial sectors that serve as a key drivers
for the broader economy. The information and communications technology sector
is one of the fastest growing in the world, particularly in Egypt, which is
undergoing a significant digital transformation to improve service quality and
accelerate the shift to a digital economy. This financing will not only
strengthen Telecom Egypt's infrastructure and technological capabilities, but
will also have a positive impact on the entire economy by creating new
employment opportunities and enhancing our competitive edge in the region."

"Mohamed El-Etreby, Chief Executive Officer of National Bank of Egypt,
commented:

"The bank is always keen to play a pivotal role in syndicating financing for
key infrastructure projects, particularly in the information and
communications technology sector, which is main pillar in building a
sustainable digital economy, advancing financial inclusion, and reinforcing
Egypt's regional and international position as a hub for information
technology, knowledge, and innovation. This, in turn, contributes to achieving
Egypt's Sustainable Development Goals and Vision 2030. We are pleased with the
fruitful collaboration between the banking consortium and Telecom Egypt in
arranging this syndicated financing, which enhances the company's liquidity
management and provides flexibility in meeting its operational expenses. This
facility underscores the banking sector's capacity to deliver effective
financing solutions that support companies to grow their businesses."

 

 

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About Telecom Egypt

 

Telecom Egypt is a total telecom services provider in Egypt that provides a
wide array of services to a diverse customer base. Serving individuals,
communities, SOHOs, SMEs and large enterprises, Telecom Egypt offers a
comprehensive, innovative, and diversified portfolio of services, ranging from
fixed and mobile voice to essential data solutions crucial in today's digital
landscape. These services also include high-speed internet, smart solutions,
data center facilities, and cloud computing solutions tailored for businesses.

With a rich heritage of about 170 years, Telecom Egypt continues to lead the
Egyptian telecom market by providing cutting-edge technology, robust
infrastructure, and an extensive network of subsea cables to meet the needs of
its enterprise and consumer clientele. The company's pivotal role in Egypt's
telecommunications landscape is underscored by its expansive network coverage,
broad service range, and dedication to fostering innovation. Aside from its
mobile operation "WE", Telecom Egypt holds a significant 45% ownership stake
in Vodafone Egypt. Telecom Egypt's shares and GDRs (Ticker: ETEL.CA; TEEG.LN)
are traded on the Egyptian Exchange and the London Stock Exchange.

 

For more information, contact:

The investor relations team

Email: investor.relations@te.eg (mailto:investor.relations@te.eg)

 

 

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