Vodafone Egypt to use old credit facility for 4G

Vodafone Egypt is to allocate EGP 2 billion from an old credit facility to finance its 4G licence plan, reports Amwal Al Ghad, citing banking sources close to the talks. In 2014, the company signed a credit facility worth EGP 4 billion with an alliance of seven banks. They were Commercial International Bank (CIB), Banque Misr, AlexBank, HSBC, Emirates NBD, QNB, and Barclays. Khaled Hegazy, director of external and legal relations at Vodafone Egypt, said in July that his company would probably self-finance half of the 4G licence in Egyptian pounds by depending on an existing credit facility. Hegazy also said Vodafone Egypt’s main concern was how to secure dollar liquidity to pay the other half of the 4G licence.
Egyptian telecoms regulator NTRA asked Vodafone to pay EGP 3.54 billion for a 4G licence, half of which must be paid in US dollars. Vodafone Egypt will have to pay EGP 3.54 billion for a 4G licence. The mobile operator is also required to pay EGP 1.8 billion for the right to offer international calls, and EGP 100 million for a licence to offer landline service.

On 31 August, Telecom Egypt acquired the country's first 4G mobile licence at a cost of EGP 7.08 billion, paving the way for it to become the fourth mobile provider in Egypt.