Cairo – Mubasher: Telecom Egypt (TE) will finance the takeover of MENA Cable with around $90 million from the $200 million short-term facility it signed with the African Export-Import Bank (Afreximbank) last week.

The Egyptian telecom firm is currently closing the deal to obtain the $200 million one-year term loan, a banking official told Shorouk News.

The facility is divided into two tranches, namely a $90 million tranche to finance the acquisition transaction of MENA Cable and a $110 million tranche to finance the company’s working capital, the official said.

The state's landline monopoly had signed a $200 million short-term facility last week with the Afreximbank for capital financing and investments in infrastructure.

TE had previously announced that its subsidiary Egyptian International Submarine Cables Co (EISCC) has implemented an agreement to buy Orascom Telecom Media and Technology Holding’s (OTMT) share in its subsidiary MENA Cable at a value of $90 million.