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Mobinil to sell $273m in bonds
04 January 2010
Egypt’s Mobinil plans to raise $273 million with the issue of bonds to expand its network
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Mobinil
Egypt
Orascom
France Telecom
Orange
Comment: Egypt is potentially fast growing for Mobinil, though the company is stuck in a dispute between its two main shareholders, Orascom and France Telecom. It’s good news, though, that the company can look beyond that dispute in order to raise funds for the future.
Egypt’s Mobinil will sell $273.3 million of five-year bonds starting mid-January 2010. The mobile telephone operator will use the proceeds of the debt issue to finance the expansion of its network. The underwriter for the bond issue is EFG-Hermes.
The bonds, which will have a fixed annual yield of 12.25% payable once every six months, will be primarily sold to non-bank financial institutions inside and outside Egypt. The issue is expected close by the end of January.
The national regulator, the Egyptian Financial Services Authority, has approved the issue. As per Egyptian rules, the issue must begin 15 days after the official announcement.
Mobinil, a joint venture between Orascom and France Telecom, is headed by Hassan Kabbani, a former executive with both shareholders.
Separately, Orascom may file a lawsuit to challenge regulatory approval of a France Telecom bid for the outstanding shares of Mobinil. France Telecom and Orascom Telecom have been in disagreement over their equity in Mobinil. GTB