Telecom Egypt signs agreement to borrow EGP 13 bn from banking consortium

Telecom Egypt (TE) signed an agreement with the National Bank of Egypt to arrange a EGP 13 bn loan from a consortium of banks to upgrade its infrastructure and mobile internet services, Al Mal reports. CIB, QNB Al Ahli Bank, Banque Misr, and Credit Agricole will contribute to the loan. The state-owned landline monopoly is racking up expenditures on launching its 4G network, which may drive it to consider exiting its 45% stake in Vodafone Egypt, Beltone Financial predicts, according to Al Borsa. The investment bank expects TE to direct the funds towards funding the EGP 7 bn it must pay by 2021 for its 4G network license. Beltone also sees TE as being the mobile network operator most negatively affected by last week’s interest rate hikes, as it has relied on credit facilities to finance its 4G license and infrastructure.