OT says agrees $2.5 bln debt facility Reuters reported that regional mobile operator Orascom Telecom said on Sunday it agreed to a $2.5 billion five-year debt facility with 12 Egyptian and international banks to refinance existing debts. The committed facility provides greater financial flexibility for the continued development of our fast growing businesses and creates a simpler and more transparent capital structure, Chief Financial Officer Aldo Mareuse said in a statement. The facility will be used to refinance the outstanding amounts under the company s existing $2.5 debt facilities and for general corporate purposes, the statement said. The facility will allow the company to evaluate investment opportunities on a disciplined basis, or continue to return capital to its shareholder s in light of favorable relative market valuations, Mareuse added. Banks which committed to underwrite the facility include Banque Misr, the National Bank of Egypt, HSBC, JP Morgan Chase Bank and Calyon. OT operates GSM networks in Algeria, Pakistan, Egypt, Tunisia, Bangladesh, Zimbabwe, and acquired a license to operate mobile services in North Korea earlier in the year. The firm approved a plan in February to reduce its issued capital by writing off treasury shares, leaving the number of fully paid-up shares at 1.028 billion. -Agencies Oriental Weavers to build industrial complex Reuters reported that Oriental Weavers said on Sunday it would build an industrial complex for more than LE 1.3 billion ($237 million) to meet rising demand. The company, which manufactures machine-woven carpets and rugs, said it had seen a 60 percent increase in signed contracts at international carpet fairs in Germany and the United States. Oriental Weavers said the first phase was set to start production by the end of 2009, and would produce rugs with an initial investment cost of LE 495 million. The second phase would add fiber extrusion and additional rug capacity and would cost LE 443 million. The third phase would introduce an additional LE 578 million in sale value and would cost LE 444 million. Oriental Weavers said the project, to encompass 17 facilities built over 190,000 square meters, would be financed through 55 percent debt and 45 percent equity. Shares in the firm ended 3.3 percent higher at LE 52.80 per share. -Agencies Japan AOC gives up Egypt stake after no oil found Japan s AOC Holdings Inc said on Monday it would give up its 90 percent stake in the South Zeit Bay field in the Gulf of Suez, after no oil or gas was detected there following the drilling of a first well, reported Reuters. AOC s oil and gas development unit Arabian Oil Co Ltd, which bought the stake last year from Swiss firm Alexoil SA, decided not to drill a second well, the company said in a statement. AOC accounted for the drilling-related costs in its group earnings forecast last month, and the move will have a small impact on its business for the year ending in March, it said in a statement. Arabian Oil has confirmed 4,900 barrels per day of oil output in Egypt s offshore Northwest October block in the northern Gulf of Suez and is currently in talks with Egypt about development. Arabian Oil aims to start commercial production in the January-March quarter of 2009 in the Northwest October block, but that may be delayed, a spokesman said. -Agencies Egypt National Bank for Development posts 2007 loss Egypt s National Bank for Development reported a net loss of LE 326.6 million ($59.5 million) on Monday, more than double its loss in 2006, the stock exchange said. The bank had reported a loss of LE 149.8 million for 2006, the stock exchange said in a statement. It gave no further details. Abu Dhabi Islamic Bank and Emirates International Investment Company paid LE 159 million pounds in July for a 51.3 percent stake in the bank. -CASE EgyptKuwait Holding 2007 net surges 85 pct Reuters reported that EgyptKuwait Holding posted an 85 percent jump in consolidated net profit in 2007 to $104.03 million, the company said on Sunday. Consolidated net profit in 2006 was $56.18 million after being adjusted according to the new Egyptian accounting standards, the company said in a statement to the stock exchange. EgyptKuwait Holding said its 2007 profit represented a 60 percent return on paid-in capital. The company, which has diverse holdings in the fertilizer, energy, insurance and agriculture sectors, said its board approved the unaudited results on Thursday. The board also recommended the payment of dividends and giving free shares, each worth 10 percent of paid-in capital, but the move would still need the approval of shareholders meeting. EgyptKuwait Holding has a 10 percent stake in a joint venture with partners including South Valley Cement to establish a new cement company with a capital of LE 600 million ($109.49 million), reported Reuters. EgyptKuwait Holding said last month that one of its affiliates had made a significant oil discovery in Egypt in the North Shadwan Concession located in the Gulf of Suez. -Agencies Invesco enters distribution agreement with Citibank Egypt Invesco Asset Management Limited signed a distribution agreement with Citibank in Egypt, said a press statement. Invesco has been present in Dubai for three years and already distributes its products throughout the UAE. All Invesco s off-shore funds will now be available to Citibank customers in Egypt. Nick Savastano, associate director of Invesco Dubai, said, "In line with our key account strategy across the MENA region, we are excited by the opportunity of working with Citibank especially in such a large developing market like Egypt. We believe that working with our key partners in such markets, offers great synergy, both in terms of distribution and product offering. Invesco s entire off-shore fund range will now be available to Citibank customers in Egypt. Invesco opened its office in Dubai in September 2005 and has a license from the Dubai Financial Services Authority to operate from the Dubai International Financial Center as an authorized firm. -AMEinfo
