Telecom Egypt, the state-controlled telecom operator, plans to borrow $150 million to restructure its existing debts and extend its term, according to Asharq Business, an Arabic financial news site.

The loan will likely be finalised within two months, the news portal reported, citing two sources familiar with the matter.

The loan is separate from EGP 18 billion ($369 million) sought by the company to cover its entire overdraft balance and convert short-term obligations to long-term after an interest rate increase, a source said.
 
Egypt’s central bank upped interest rates by about 600 basis points last March, with average lending interest rates reaching 28.25%, the report said.

Telecom Egypt, which trades on the Egyptian stock exchange, said this month that consolidated revenue rose 35% year-on-year to EGP38 billion, with net profit after taxes reaching EGP 6.5 billion.

(Editing by Seban Scaria seban.scaria@lseg.com)