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Egypt Telecom obtains a €150 million loan from the European Investment Bank to strengthen its 4G network

(Ecofin Agency) – Since 2016, the Egyptian government has made citizen-centric digital transformation a factor of sustainable development. Cairo is increasing investments in the public telecom company to achieve this objective.

The telecommunications operator Telecom Egypt signed, on Sunday March 27, an agreement with the European Investment Bank (EIB), the financing body of the European Union. The agreement concerns a medium-term loan of €150 million ($164.5 million) which will be used to extend the mobile operator’s 4G network throughout the territory of the Arab Republic of Egypt. This is the largest loan granted by the European Investment Bank for the development of mobile networks in Africa. This credit facility brings to more than 1.5 billion USD the total amount raised by Telecom Egypt over the past four years to support its investment operations.

Telecom Egypt will use the funds to expand and improve the coverage of its mobile phone network by constructing 2,000 new telecommunication tower sites and increasing the capacity of its existing towers by adding new layers.

Flavia Palanza, Director of Operations of the European Investment Bank in the countries neighboring the European Union (EU), commented on the operation in these terms:this project is accelerating investments in building mobile phone networks to facilitate access to digital services in Egypt. From the perspective of the European Investment Bank, digital transformation is the main driver of innovation, job creation and sustainable economic growth“.

This loan is in addition to the four others contracted by the public company since 2018 and which have enabled it to raise $ 1.4 billion. In May 2018, the Bank of China and the China Export & Credit Insurance Corporation granted a syndicated loan of USD 200 million to Egypt Telecom in addition to another similar amount raised from the African Export-Import Bank (Afreximbank). In August of the same year, the company obtained a $500 million credit facility from a consortium of UAE banks led by First Abu Dhabi Bank PJSC and Mashreqbank PSC. Last October, the company secured another $500 million syndicated loan from a consortium of banks, including the National Bank of Kuwait, Abu Dhabi Commercial Bank and Europe Arab Bank.

These various investments reflect the efforts made in recent years by Telecom Egypt to provide modern communication services to all Egyptians in a context marked by the acceleration of demand for broadband connectivity and digital transformation.

With this EIB investment, Telecom Egypt plans to bring high-speed connectivity even to less densely populated areas of Egypt. It will also enable the public company to provide more competitive services at affordable prices to strengthen its competitive position in the Egyptian telecommunications market.

Isaac K. Kassouwi

Read also:

25/11/2021 – Telecom Egypt has upgraded the capacities of the Mediterranean segment of its MENA submarine cable and its national network

27/10/2021 — Telecom Egypt has obtained a new syndicated loan of $500 million from a consortium of banks

08/14/2018 — Telecom Egypt Secures US$500 Million Syndicated Loan Led by UAE Banks

31/05/2018 – Two Chinese financial institutions grant a $200 million loan to Telecom Egypt

22/05/2018 – Afreximbank extends $200 million revolving credit facility to Telecom Egypt

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