Mobinil looks to raise US$360 million through debt

Egypt’s Mobinil says that it is currently negotiating a loan from a consortium of four banks. In a statement to the stock exchange, the company said that it is looking to raise EGP2.5 billion (US$357 million) from the banks, which will be used for network expansion projects.

The debt raising could suggest that a previous plan to sell fresh shares to raise funds has been delayed in light of the country’s on-going political turmoil.

The company, which is majority owned by France Telecom currently lists just one per cent on the stock market. It had been expected to sell fresh shares to take its public shares up to 15 per cent of the total.

Following a protracted dispute with the previous co-owner, France Telecom now owns 94 per cent of Mobinil, while Orascom Telecom Media and Technology Holding retains a small five per cent stake.

The changes to the listing requirements for at least a 15 per cent stake to be floated were made by the stock exchange last year.

The company is also shortly to receive a licence to resell landline services provided by Telecom Egypt, but is also expected to face increased price competition when the landline operator launches its own MVNO.