Telecom Egypt secured a US$200mn financing facility with the African Export-Import Bank (Afreximbank), which it will use to buy a cross-border marine cable and boost internet services in the country
George Elombi, executive vice-president, governance, legal and corporate services, signed the agreement on behalf of Afreximbank while Ahmed El Beheiry, CEO, Telecom Egypt, signed on behalf of his organisation.
El Beheiry said the facility was “an integral step in providing the necessary liquidity to finance our working capital requirements and the necessary funding for investment at the lowest possible cost”.
“Telecom Egypt’s Board of Directors had approved the short-term renewable financing facility from the African Bank for Import and Export, managed by Abu Dhabi Islamic Bank, for a maximum of US$200 million. This deal will provide the necessary liquidity to finance our working capital requirements and provide the necessary funding for investment at the lowest possible cost,” El Beheiry added.
The cable is expected to help in expanding internet access to a number of African countries, which will benefit directly from the cable, and help Egypt in becoming a regional hub for internet and telecom services.
The digital needs of African countries will grow as their economies modernise and access to an undersea cable could significantly boost internet services for users.
Afreximbank has provided credit facilities totalling about US$14bn to Egyptian companies since Inception in 1993.