Telecom Egypt has signed a USD 500 mn medium-term loan agreement with a syndicate of 11 international banks, the company announced in a statement(pdf) dated Thursday but posted on EGX screens yesterday. The state-owned firm will use the financing to restructure its short-term USD overdrafts into longer-term loans and to fund capital expenditure, according to the statement. TE did not disclose the tenor of the loan but anonymous sources said earlier this month that it would be repayable over six years.

First Abu Dhabi Bank (FAB) and Mashreq Bank led the 11-strong syndicate of banks financing the loan as joint coordinators, underwriters, lead arrangers and bookrunners.

This is the first time the company has tapped international debt markets since 2018, when it signed a similar five-year, USD 500 mn loan with a 13-bank syndicate, also led by FAB and Mashreq Bank.

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