MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

VODAFONE EGYPT TELECOMMUNICATIONS COMPANY SAE

 

 

Registered Office :

Vodafone Egypt Building, Plot No. 3/15C Cairo Alexandria Desert Road Giza

Sixth of October City

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.05.1998

 

 

Com. Reg. No.:

120898

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Providers of mobile telecommunication services.

 

 

No. of Employees :

3,000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Egypt

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EGYPT - ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. Despite the relatively high levels of economic growth in recent years, living conditions for the average Egyptian remained poor and contributed to public discontent. After unrest erupted in January 2011, the Egyptian Government drastically increased social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction are among the hardest hit sectors of the Egyptian economy, and economic growth is likely to remain slow at least through 2012. The government is utilizing foreign exchange reserves to support the Egyptian pound and Egypt may seek a loan from the International Monetary Fund.

Source : CIA


 

 

SUMMARY

 

Company Name                                    : VODAFONE EGYPT TELECOMMUNICATIONS COMPANY SAE

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 26th May 1998

Commercial Registration Number           : 120898

Issued Capital                                       : £E 1,200,000,000

Paid up Capital                                     : £E 1,200,000,000

Total Workforce                         : 3,000

Activities                                               : Providers of mobile telecommunication services.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 


COMPANY NAME

 

VODAFONE EGYPT TELECOMMUNICATIONS COMPANY SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Vodafone Egypt Building, Plot No. 3/15C

Street               : Cairo Alexandria Desert Road

Area                 : Giza

 

Town                : Sixth of October City

Country : Egypt

 

Telephone         : (20-2) 25291000 / 25292000 / 25292005 / 25292006 / 25292004

Facsimile          : (20-2) 25292636 / 25292049 / 25292200

Mobile              : (20-100) 1002226

 

Premises

 

Subject operates from a suite of offices that are owned and located in the Central Business Area of Sixth of October City.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Dallah Tower, 9th Floor                                                                      Rented office premises

     7A Corniche El Nile Street

     Maadi

     Cairo

     Tel: (20-2) 25292115 / 25293200 / 25292315

     Fax: (20-2) 25292100 / 25292001 / 25292005

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ian Gray                                                                                           Chairman

 

·       Michael J Bianchi                                                                              Director

 

·       Tim Harrabin                                                                         Director

 

·       Robbie Barr                                                                                      Director

 

·       Akil Beshir                                                                                        Director

 

·       Ali Salama                                                                                        Director

 

·       Sanaa Soliman                                                                                 Director

 

·       Mohamed El Nawawy                                                                        Director

 

·       Paul Donovan                                                                                  Director

 

·       Raafat Abd El Baki                                                                           Director

 

·       Hatem Mohamed Galal Dowidar                                                        Chief Executive Officer

 

·       Wael Fawzi Gadallah                                                             Commercial Manager

 

·       Emad El Azhary                                                                                Marketing Manager

 

·       Marwa El Ayouti                                                                               Chief Financial Officer

 

·       Dalia El Gezery                                                                                 Human Resources Manager

 

·       Mai Shabaan                                                                                    Office Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26th May 1998

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 120898

 

Issued Capital              : £E 1,200,000,000

 

Paid up Capital            : £E 1,200,000,000

 

Name of Shareholder (s)                                                 Percentage

 

·       Telecom Egypt                                                              44.7%         

Cairo

 

·       Vodafone Europe Holding BV                                        34.8%

United Kingdom

·       Vodafone International Holdings BV                               20.1%

United Kingdom

·       Members of the general public & private investors            0.4%

 

 

AFFILIATED COMPANIES

 

·       Vodafone Egypt Technology

El Wehda El Edareya, Plot 1/14A

     El Mehwar El Markazy

     Giza

     Sixth of October City

     Tel: (20-2) 25292000

 

 

OPERATIONS

 

Activities: Engaged in the provision of mobile telecommunication services.

 

     Vodafone Egypt has invested over LE 3 billion in the construction of its existing network. The Company

     has grown rapidly to its current customer base of over 2.5 million subscribers. This success has been built

     on the collaboration between the Company's majority shareholder, Vodafone Group, representing the

     world's largest mobile community, Egyptian partners Alkan, Banque du Caire and MSI International who

     operates in several African markets. However, Vodafone retains all management responsibilities.

 

     Subject has introduced several new services to the Egyptian mobile telecommunications market. These

     pioneering services include pre-paid lines, Short-Message-Service ("SMS"), Dual SIM, Wireless Fax and

     E-mail, and IVR (interactive voice response).

 

     Vodafone Egypt network covers 98% of the populated areas and in March 2003 Vodafone Egypt was the

     first major telecom operator in Egypt to launch a GPRS network.

 

     Vodafone Egypt has grown over the years to become the leading mobile operator in Egypt, not only in

     revenue share but also to become the number 1 mobile operator in Egypt with the largest customer base.

     Vodafone proudly serves more than 36.3 million customers (December 2011) offering the most advanced

     technology for its customers, the best working environment for its 6,500 employees and the strongest

     corporate responsibility initiatives for the community.

 

     Vodafone Egypt reputation and the value of its brand are built on Vodafone’s global commitment to

     responsible, ethical and honest behaviour within the communities in which it operates. Since its inception,

     corporate responsibility was an integral part of Vodafone Egypt’s operation in Egypt. To further expand the

     impact of Vodafone’s corporate responsibility initiatives, Vodafone Egypt Foundation was established in

     2003, as a corporate foundation donor, supporting NGOs and civil society organizations to implement

     developmental project in the areas of health and education for children, community development, the

     usage of mobile technology for development and access to communications.

 

Import Countries: Sweden, China, United States of America, Canada and United Kingdom

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,000 employees.

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 31/12/11:               Year Ending 31/12/12:

 

Total Sales                                £E 10,120,635,890                     £E 11,365,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 33904554

Fax: (20-2) 33908992

 

·       Egyptian British Bank SAE

Zamalek Abou El Feda Building

Abou El Feda Street

Zamalek

PO Box: 126D

Cairo

Tel: (20-2) 33404849 / 33408938

Fax: (20-2) 33414010

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.