Mobinil launches £E1.5bn corporate bond

31 December 2009

Orascom Telecom has appealed against markets regulator’s decision

Egyptian Company for Mobile Services (ECMS), which runs Egypt’s largest mobile phone operator Mobinil, plans to raise £E1.5bn ($270m) through a corporate bond by the end of January.

The company, which is jointly owned by France Telecom and Egypt-based Orascom Telecom, declined to say why it wanted to raise the money.

ECMS plans to raise £E1.4bn through a private placement and the remaining £E100m from retail investors.

The bond is the largest corporate deal in Egypt in 2009, according to EFG-Hermes, the Egyptian investment bank which is underwriting the five-year debt issue.

On 16 December, Orascom Telecom appealed against a decision by Egypt’s capital markets regulator, the Egyptian Financial Supervisory Authority, to allow France Telecom to buy all of the equity in ECMS that it does not already own at a price of £E245 a share.

Naguib Sawiris, chairman of Orascom Telecom, said at the time that France Telecom would only take over ECMS over “my dead body”.

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