Telecom Egypt is Egypt’s biggest fixed line and mobile operator and operates the TE North subsea cable system, connecting North Africa with Europe
Telecom Egypt has obtained $200 million in funding from Chinese financial institutions to help it finance the rollout of 4G networks across the North African nation.
The deal was struck in collaboration with Chinese tech giant, Huawei, who will play a key role in the development of Egypt’s mobile networks.
“Telecom Egypt has several strategic long-term expansion plans to be delivered in the coming years. To achieve such plans, we have worked on attaining long-term financing at the lowest possible cost as well as the most convenient payment terms to match our cash flow generation while proceeding with our rollout plans. Our success in securing such financing agreement with the Chinese financial institutions and Huawei indicates our strong financial position and credit profile and marks the first of its kind in the telecom sector. The facility benefits Telecom Egypt by providing a simplified purchasing process through a packaged financial solution, while it allows Huawei to further expand its business in Egypt,” said Eng. Ahmed El Beheiry, managing director and CEO of Telecom Egypt.
The credit facility will last for 48 months, with a grace period of 24 months, and will allow Telecom Egypt to raise its capex for its network expansion project.
“Throughout the years Huawei has been successful in building and maintaining a strong partnership with Telecom Egypt. Today, we are taking another step towards strengthening this partnership and supporting Telecom Egypt in their strategy to expand by facilitating the financing agreement,” said Terry Liu, CEO of Huawei Egypt Office.
Related News: Last year, Telecom Egypt settled a long running legal dispute with Orange over a long running dispute over interconnection and international gateway services.