Mobinil, which owns Egypt’s largest mobile operator ECMS, has approved plans to issue E£1.5bn (US$275m) in bonds to expand its network and pay back some short-term debt.
Its shareholders will now have to approve the bonds, which will take the shape of…
Mobinil, which owns Egypt’s largest mobile operator ECMS, has approved plans to issue E£1.5bn (US$275m) in bonds to expand its network and pay back some short-term debt.
Its shareholders will now have to approve the bonds, which will take the shape of fixed-rate, unsecured, five-year facilities and will be aimed at institutions and funds operating in Egypt.
The company initially announced plans to raise bonds in October.
At the time, CEO Hassan Kabbani said the bonds would help cover the E£750m needed for a 3G licence and fund acquisitions such as its planned purchase of Orascom’s LinkDotNet, should it win the auction for the internet provider.
The former Orange executive also said, however, that Mobinil’s connection with the indebted Orascom – which owns 29% of the group – had made it harder to borrow money as Egyptian laws put a cap on how much they can lend to any one client.
EFG Hermes is advising it on ways to tap the local bond market.
Mobinil owns 51% of ECMS and is owned by France Telecom and Orascom. However, the two parents have been locked in a heated dispute since April this year, when France Telecom made an offer to take over full control of the holding company.
The remaining shares in ECMS are owned by Orascom directly (20%) and listed on the local exchange (29%).