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Egypt : MOBINIL secured major funding from NBE & EGYPTIAN GULF BANK.

Mobinil, one of the leading providers of telecom services in Egypt, has obtained an EGP 500m in additional loan from National Bank of Egypt (NBE), while another support worth EGP 120m will come from Egyptian Gulf Bank.

Sources at the participating banks have made these revelations.

According to them, NBE, Egyptian Gulf Bank and numerous others banks have come forward to deliver the telecom firm with overall loan of EGP 1bn.

Blom Bank Egypt has decided to give EGP 70m to Mobinil, whilst the Industrial Development & Workers Bank of Egypt will initially offer EGP 125m, the sources said.

These sources have revealed that the NBE is yet to take decision on the two options of offering the residual sum of the overall loan of EGP 1bn or bring in another bank to contribute the remaining part of the financing. If the lender opts for the first option, its share in the overall funding will increase to EGP 650m.

Meanwhile, Mobinil has inked a syndicated loan agreement worth EGP 815m with the aforesaid four banks. But, this amount is subject to go up to EGP 1bn.

Mobinil will spend the funds to support growth capital intended at expansion of its mobile network and for other operational purposes. These moves will facilitate the telecom company enhance the quality of its services and sustain such activities. Mobinil will also utilize the loan to support part of the bonds slated for next year maturity.

Mobinil has disclosed that it is in search of solutions to trim down its debt and also planning to dispose of some of its non-core assets. Moreover, the mobile phone operator has also disclosed that it is having regular talks with its major shareholders to assess their viewpoints to cut debt. However, nothing tangible result has come out so far from these talks.

2014 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).

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Publication:Mena Report
Geographic Code:7EGYP
Date:Aug 5, 2014
Words:315
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