Telecom Egypt (TE)has mandated a four-strong bank group to arrange a bond issue worth £E 2,000 million ($321.5 million), to be used for a combination of refinancing and future projects. The issue is expected to be launched in late September.

HSBCwas appointed financial adviser on the funding in January and received two responses to the request for proposals (RFP). The winning group, which will fully underwrite the issue, is composed of Citigroup, Banque du Caire, Bank of Alexandria and Arab African International Bank.

The tenor of the paper will be either five or seven years, pending evaluation of TE's financial outlook. Pricing of the issue will depend on TE's rating from Moody's Investors Service, expected to be decided by the end of August.