Cairo – Mubasher: The board of Telecom Egypt (TE) has approved to obtain long-term facilities worth $900 million.
The board has also approved a five-year syndicated loan worth $500 million to be arranged by Mashreq Bank and First Abu Dhabi Bank (FAB), the company highlighted in a filing to the Egyptian Exchange (EGX) on Thursday.
The board has also endorsed a 12-month short-term renewable credit facility provided by FAB and the African Export-Import Bank (Afreximbank) worth $200 million, TE added.
In the same vein, the board has given a nod to a $200 million four-year vendor finance agreement with a grace period of 24 months, Egypt's landline monopoly said.
These facilities aim to convert short-term overdrafts in US dollar to long-term loans in order to pay off dues while generating cash flows in accordance with the company’s plan for the future business.
The credit facilities will also provide flexibility to finance capital and to invest in the fourth generation of cellular network technology (4G) with a low-interest rate, the company indicated.
Earlier this morning, TE announced it approved a subsidiary's acquisition of MENA Submarine Cable at a total value of EGP 1.6 billion ($90 million) that will be financed through a shareholder loan from TE
