Orange Egypt to borrow EUR 500 mn to pay for 4G licence
Orange Egypt will finance the foreign currency component 4G licence fees through a EUR 500 mn loan from its majority shareholder MT Telecom SCRL (wholly owned by Orange Group) payable on 21 December 2020 and carrying an interest rate of 7% per annum. According to a release sent to the EGX and carried by Reuters, the funding will also help cover the cost of a fixed line licence. Orange Egypt CEO Jean Marc Harion says with the foreign currency component secured, 100% of the total funding requirement is met, as the company has already paid the EGP portion, Al Mal reported. Orange Egypt will begin providing 4G services within three months, Harion told Reuters’ Arabic service, providing connectivity at speeds up to 10x faster than today. Harion also said that prices of Orange’s services will not increase to consumers as a result of the float, affirming that the company will instead opt to preserve margins through cost-cutting measures, Al Mal also noted.