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Orascom gets $225m Weather loan
19 February 2010
The biggest shareholder in Egypt-based Orascom is to lend the company $225 million free of interest
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Orascom
Egypt
Naguid Sawiris
Weather
Algeria
Wind
Orascom Telecom Holding has secured a $225 million interest free loan from Weather Capital Special Purpose 1. The company’s largest shareholder has offered the amount as a pre-funding to participate in the Orascom unit’s proposed rights issue.
The amount, which is currently in the form of an interest free shareholder loan, will be changed into new global depositary receipts, if the rights issue is completed.
The shareholders of Orascom Telecom, led by Naguid Sawiris, approved a $800 million rights issue in December 2009, seeking to boost the company’s balance sheet. The proceeds will help increase liquidity, including financing needs for the company in case the tax dispute in Algeria is not resolved, and for general corporate purposes.
Orascom operates in many countries under the Wind brand. Its Algerian subsidiary is in dispute over $600 million tax bill going back to 2004. GTB