The Egyptian Co. for Mobile Services possibly will issue bonds valued at US$175 million. According to Chief Executive Officer Hassan Kabbani, The Egyptian Co. for Mobile Services may issue bonds valued at US$175 million. The Cairo-based company that operates under the brand Mobinil plans to use the proceeds to fund network expansion. The time frame for the sale is yet to be disclosed.
Mobinil sold 2.32 billion U.S. dollars of bonds this year with the institutional portion having 1.5 times more offers than bonds available, and the sale to individual investors being 11.4 times oversubscribed.
According to Kabbani, the first issue was a huge success, the company got a positive reaction and that’s why the company is thinking of a second issue to fund expansion. Mobinil has a very aggressive expansion plan.The company has difficulties borrowing from banks because the central bank limits how much a local company can rise from lenders and treats, Mobinil as a unit of Orascom Telecom Holding SAE when it should be considered part of France Telecom SA.
Orascom first operation was the Egyptian Company for Mobile Services commonly known as Mobinil. Mobinil is a market leader serving over 24.2 million subscribers representing a market share of 43.6% (as of September 2009). Mobinil is one of Egypt’s five largest companies on Cairo & Alexandria Stock Exchange (CASEâ€) in terms of market capitalization.
Orascom and the Paris-based company in May settled a more than two-year legal dispute over the ownership of Mobinil, keeping the ownership structure unmoved.