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[September 04, 2014]
Djezzy secures USD1bn loan from 'large national bank' [TeleGeography CommsUpdate]
(TeleGeography CommsUpdate Via Acquire Media NewsEdge) Vincenzo Nesci, president and CEO of Algerian mobile operator Djezzy GSM, has reportedly revealed that the company secured a USD1 billion loan from an unnamed 'large national bank', Agence Ecofin reports. The executive disclosed the development on the sidelines of an Extraordinary General Meeting (EGM) of Vimpelcom subsidiary Global Telecom Holding (GTH), which saw the approval of the sale of 51% of Djezzy to the Algerian National Investment Fund (Fonds National d'Investissement [FNI]) for USD2.64 billion. The funding will be granted after the conclusion of the deal, and will reportedly be used to strengthen Djezzy's position in the Algerian market by developing its network infrastructure.*As previously reported by TeleGeography's CommsUpdate, Russian-backed Vimpelcom and the Algerian government agreed in principle to the 51% stake deal in April to end years of arguments. Meanwhile, as previously reported by CommsUpdate, Cevital, which owns 3% of Djezzy, has agreed to sell its share to Vimpelcom for USD178 million, bringing the group's holding in the Algerian cellco to 49%. Under the deal, Vimpelcom/GTH will retain a minority stake and management control of Djezzy and will continue to consolidate Djezzy's results under International Financial Reporting Standards (IFRS).
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