Mobile Network Operators are relying on their parent companies for the USD portion of the 4G license, sources tell Al Mal, leading the newspaper to conclude that domestic banks are involved in sourcing USD.

Vodafone Egypt paid EGP 1.5 bn toward it license on 15 October, an unnamed company official told Reuters in a comment later picked up by Al Borsa, which cites other sources as speculating the funding came from an EGP 4 bn credit facility that was agreed upon with a seven-bank consortium last year, but never drawn down. Reuters adds that VFE will pay 50% of the total fee in USD, adding that after the initial EGP 1.5 bn, “we will pay the remaining fee within the coming days in coordination with our parent company.” Al Mal also has coverage.

Al Mal and Al Borsa report that Etisalat has contacted domestic banks for an ‘emergency’ EGP 2 bn credit facility that will be paid back through an EGP 5 bn facility currently in negotiation, but Reuters says Etisalat Misr has yet to pay for the license fees, but is considering “capital hike, loan, other means to pay.”

Meanwhile, Orange Egypt said it would reach a financial agreement with one of the Orange subsidiaries without clarification on whether the agreement would cover both portions of the 4G license, but Director of Legal & Corporate Affairs at Orange Ayman Essam said there are no negotiations with domestic banks. As we had previously reported, Vodafone Egypt signed the 4G license for USD 335 mn, while Etisalat signed the agreement for USD 535.5 mn, and Orange for USD 484 mn.

Looking for color and background? Naeem Holding director of research Allen Sandeep spoke yesterday with Bloomberg TV’s Yousef Gamal El-Din yesterday (watch, run time: 5:49).