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10 banks offer EGP 6bn syndicated loan to Etisalat Egypt - Daily News Egypt

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10 banks offer EGP 6bn syndicated loan to Etisalat Egypt

A banking alliance of 10 major banks signed a syndicated long-term loan to Etisalat Egypt, amounting to EGP 6bn, to finance the purchase of the 4G licence and the new frequencies, as well as the repayment of the existing dues and the company’s operation expenses. The alliance included the National Bank of Egypt (NBE), the …


A banking alliance of 10 major banks signed a syndicated long-term loan to Etisalat Egypt, amounting to EGP 6bn, to finance the purchase of the 4G licence and the new frequencies, as well as the repayment of the existing dues and the company’s operation expenses.

The alliance included the National Bank of Egypt (NBE), the Commercial International Bank (CIB), and Banque Misr as lead banks, main arranger, and agents; the Qatar National Bank (QNB), HSBC-Egypt, and the National Bank of Abu Dhabi (NBAD) as main arrangers; the National Bank of Kuwait (NBK), Crédit Agricole Egypt, and Emirates NBD as arrangers.

The syndicated loan consists of two tranches. The first tranche would be a renewable decreasing loan worth EGP 3.5bn for a seven-year period, while the second tranche would be a five-year period loan worth EGP 2.5bn.

The NBE served as the funding agent with a loan share of EGP 1.25bn, while each of CIB and Banque Misr offered EGP 900m. The loan share of QNB reached EGP 800m, HSBC-Egypt EGP 550m, NBAD EGP 500m, the Bank of Alexandria EGP 350m, NBK EGP 300m, Credit Agricole Egypt EGP250m, and Emirates NBD EGP 200m.

Etisalat Egypt contracted in mid-October with the National Telecommunications Regulatory Authority (NTRA) to establish and operate the 4G network and get new frequencies. The company has obtained initial loans from the NBE, CIB, Banque Misr, and QNB to pay for the 4G licence until the completion of the syndicated loan procedures.

This loan comes in the framework of these banks’ plan to support the development of the communications service in Egypt through supporting telecommunications companies operating in the Egyptian market. It also reflects the NBE, CIB, and Banque Misr’s ability to arrange this type of loan for many vital sectors in the Egyptian economy, such as oil, electricity, transportation, and construction.

The signing ceremony of the loan contract was attended by the leaders of the participating banks, as well as the CEO of Etisalat Egypt and the company’s head of the financial division, in addition to members of the working teams from all parties.

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https://www.dailynewsegypt.com/2016/12/24/10-banks-offer-egp-6bn-syndicated-loan-etisalat-egypt/
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