The Clap
According to sources, Telecom Egypt (ETEL) is considering issuing securitization bonds to finance its investments and expansion.
Need to Know
Companies issue these bonds with a guarantee of expected future revenues and sell them to investors to raise funds. CIRA was the first company in Egypt to issue this type of bond, at a value of EGP 800m, as part of a larger EGP 1.5bn issuance program.
What
The company has not yet finalized the value of the bonds it wants to offer, nor the expected timetable for the offering.
Now What
Sources added that Telecom Egypt wants to increase its revenues in dollars in order to mitigate the impact of the weaker EGP on its profits.
