Egypt’s largest telecommunications company Orascom Telecom has issued a request for a $350 million loan in order to refinance debt, local business newspaper al-Alam al-Youm reports.
The report, which did not give specific source details, said Orascom was looking to battle its debt after the establishment of a new company.
The same report said Orascom is looking to negotiate with local banks including Commercial International Bank (CIB), National Societe Generale Bank and HSBC Holdings to receive the loan for the company after a merger with Russia’s VimpelCom.
The loan, the company was reported to have said, is to hold onto assets not included in the merger with VimpelCom.
Samer Hossam, a ministry of finance official, said that the loans are likely to be granted in order to maintain the quality of telecom operators in the country.
“Orascom is an important aspect of the Egyptian economy and we feel that in order to make certain that the banks and the economy function properly, these loans are an important step in maintaining quality business in the country,” he said.
By Jonathan Terry
