Cairo – Mubasher: Telecom Egypt (TE) and Huawei Technologies Co have signed a $200 million long-term facility provided from a number of Chinese financial institutions.
These institutions are Bank of China and China Export & Credit Insurance Corporation (Sinosure), the state's landline monopoly highlighted in a filing to the Egyptian Exchange (EGX) on Wednesday.
Upon the agreement, Huawei will offer competitive financing conditions for Egypt's largest internet provider to finance the establishment of the 4G network and develop the telecom firm’s infrastructural networks, according to the filing.
The tenor of the facility is 48 months with a grace period of 24 months, the company added.
The facility provides TE with financial solutions that ease purchasing process, while it enables Huawei to further expand its business in Egypt, managing director and CEO of TE Ahmed El Beheiry said.
Last week, TE had signed a $200 million short-term facility with the African Export-Import Bank (Afreximbank) for capital financing and investments in infrastructure.
Earlier this month, the board of TE approved to obtain long-term facilities worth $900 million.
