(Ecofin Agency) - Telecom Egypt signed, last Sunday, a €150 million (US$164.5 million) medium-term loan agreement with the European Investment Bank (EIB). The funds loaned will be used to expand the mobile operator's 4G network nationwide. This is the largest loan provided by the European Investment Bank for the development of mobile networks in Africa.

Thanks to the loan, Telecom Egypt will build 2,000 new telecommunication towers and boost the capacities of existing towers by adding new layers.

“This project will help accelerate large-scale investment in mobile networks and ensure affordable access to digital services in Egypt. The EIB identifies digital transformation as a catalyzer for innovation, employment, and sustainable economic growth,” commented Flavia Palanza, EIB’s Director – EU Neighborhood Countries.

The loan brings the overall volume of funds raised by the state firm since 2018 to US$1.4 billion.  In May 2018, the Bank of China and China Export & Credit Insurance Corporation provided a US$200 million syndicated loan to Egypt Telecom. A similar amount was raised from the African Export-Import Bank (Afreximbank). Several months later (in August 2018), the company secured a US$500 million credit facility from a consortium of Emirati 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 investments reflect Telecom Egypt's efforts in recent years to provide modern communication services to Egyptians in a context marked by accelerated demand for broadband connection and digital transformation

Thanks to the new loan, Telecom Egypt plans to provide broadband connectivity to the least populated areas, offer competitive and affordable services, and boost its position in the Egyptian telecommunications market.

Isaac K. Kassouwi