ICBC DIFC Branch contributes to $500 million syndicated loan to Telecom Egypt in October 2018

In October 2018, Telecom Egypt signed a $500 million medium-term syndicated loan agreement with a group of financial institutions, which was to be used by the borrower to support its capital and operational expenditure and to refinance an existing short-term facility. According to Telecom Egypt's Managing Director and Chief Executive Officer, the aim of the facility was to convert the company's short-term USD overdrafts into longer-term loans to enable the company to repay installments in line with its cash flow generation. The facility was also reportedly intent to ensure the flexibility to finance Telecom Egypt’s working capital needs as well as to invest in its 4G infrastructure. First Abu Dhabi Bank PJSC (FAB) and Mashreq Bank PSC (Mashreq) were mandated as Joint Bookrunners and Mandated Lead Arrangers of the facility. FAB was the facility agent for the transaction and Mashreq Bank was the designated Account Bank. Arab Bank PLC - Bahrain, Union National Bank PJSC, National Bank of Kuwait, and Arab Banking Corporation BSC were the mandated lead arrangers. Industrial & Commercial Bank of China Limited (ICBC) DIFC branch and Ahli United Bank BSC were the lead arrangers. Al Ahli Bank of Kuwait KSCP - DIFC branch, Attijariwafa Bank, ICICI Bank Limited - Bahrain branch, Bank of Jordan Company, and BMCE Bank International PLC served as arrangers.

Additional details

1. The precise size of the contribution of ICBC to the loan syndicate is unknown. For the time being, AidData assumes equal contributions to the $500 million loan ($38,461,539) across the 13 known participants in the loan syndicate. 2. Telecom Egypt (Arabic: المصرية للاتصالات), is Egypt's primary telephone company. It started in 1854 with the first telegraph line in Egypt. In 1998, it replaced the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). The company has a fixed-line subscriber base in excess of 6 million subscribers. Egypt's Ministry of Communications and Information Technology holds an 80% ownership stake in Telecom Egypt.

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