Mohamed Nasr, managing director and CEO, Telecom Egypt.

Telecom Egypt inked an agreement this week to receive a $200 million medium-term loan from Banque Misr in the United Arab Emirates.

The telco stated that it will use the loan to renew its existing short-term facilities.

The loan comes as Telecom Egypt is pursuing a refinancing plan to lower borrowing costs, ensure adequate liquidity, and boost financial flexibility.

According to a statement from Telecom Egypt, this five-year amortising loan would be paid off with foreign currency profits.

Mohamed Nasr, managing director and CEO, Telecom Egypt, commented: “This loan will complement our existing liquidity base and enable us to repay instalments in line with the cash flow generation from our different foreign currency revenue streams.

“We are confident that our solid financial and operational plans will deliver exceptional results and continued organic growth, allowing us greater cash flow flexibility, continued product development, enhanced service to all of our customers, and propel our future business growth.”