Al Ahly Pharos

Ministers have given the green light to the Finance Ministry to take a fresh USD500 million issuance of JPY-denominated bonds to market. The so-called “Samurai bonds” would carry a tenor of five years. Prime Minister has issued a decision to double the Sovereign Fund of Egypt’s authorized capital to EGP400 billion. The cabinet approved the launch of a council for green hydrogen tasked with oversee...

Market Overview  COMI CIEB EXPA ETEL HELI ELKA ORWE ARAB prepared by: Mayada Amin - CETA, CFTe

The government is looking to sell a c.70% stake in the 4.8-GW Beni Suef combined-cycle power plant. An indicative value of USD1.4-1.9 bn was assigned to the asset.  Two unnamed investors are looking to acquire a stake in bottled drinks firm Safi.  A further stake in the Zafarana wind farm will be offered to international investors aside from the portion that the government has in principle agreed...

Market Overview 

Market overview 

The government pledged to guarantee the capital (USD800 million) recently invested by ADQ in 3 companies, in addition to an annual rate of 8% for a period of 4 years. The companies include National Drilling (25%), Elab (35%), and Ethydco (30%).   Egypt’s government intends to offer stakes in 5 key companies, in addition to water desalination plants, until the end of June 2024. The program aims to...

El Sisi yesterday instructed cabinet to implement a package of incentives to support industrial activity and accelerate localization. -Provide new industrial projects in specific sectors a five-year exemption from all taxes, excluding VAT, provided the projects are up and running within three years. -Businesses that get their projects operational in half the agreed upon time frame will receive a 5...

Market Overview  ETEL CSAG COMI CIEB ORAS

Egypt intends to pay USD240 million to the IMF next September, to pay off a tranche of the USD5 billion credit agreement it concluded in 2020. Egypt was among the six countries invited to join the Brics starting January 2024, along with Saudi Arabia, UAE, Argentina, Iran, and Ethiopia.  Ahmed Abdelrahman El Sheikh has been named Head of EGX for a one-year term starting 26 August. The Financial Reg...

-Market Overview  ETEL ELHOA ARCC EPCO ETRS EFIH - prepared by: Mayada Amin - CETA, CFTe

Budget deficit increased to 6.26% of GDP in the first 11 months of FY22/23 to record EGP615.2 billion, compared to 5.50% of GDP in the same period last year. GAFI has approved GV Investments’ ambitious 26k-feddan Tarboul industrial project in Giza. The project will require EGP500 billion (USD16.2 billion) of investments. The leaders of Brazil, Russia, India, China and South Africa are reportedly c...

Market Overview 

Unemployment inched down to 7.0% in 2Q23, down 0.1% from 1Q23, according to data released by statistics agency Capmas. Unemployment was down 0.2% compared with the same period last year. Egypt's non-petroleum trade deficit has reached USD7.5 billion in 2Q23, showing a 10.7% dip from the same period last year. Non-oil imports value has dropped to USD15.9 billion in 2Q23 from USD17.6 billion in...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

The cost of insuring Egypt's 5-year sovereign debt increased by more than 200 bps during the last two weeks, to record 15.6%, as well as the cost of insuring one-year debt rose to 11.2%, compared to 8.7% during the same period.  The yield on Egypt’s dollar-denominated bonds, reached 18.7%, compared to 16.9% on August 8. The USD/EGP settled in non-deliverable futures contracts for a year at 40...

Market overview  Prepared by Mayada Amin - CETA, CFTe

Mashreq Bank Egypt, Credit Agricole Egypt, and the National Bank of Kuwait’s Egypt unit have begun due diligence on United Bank with a view to potentially acquiring a stake in the bank. Misr Digital Innovation Company, a subsidiary of Banque Misr, submitted the first application to obtain a license to operate a digital bank in Egypt. SAUD announced receiving preliminary approvals to establish Al B...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The Cabinet approved fixing the currently applied electricity prices until January 1, 2024. The Cabinet granted the International Finance Corporation the right to issue bonds in Egyptian pounds in foreign markets. Hassan Abdalla has been reappointed as the acting CBE governor for another one-year. Egypt plans to establish a logistics zone on the Libyan border as it looks to increase trade with its...

Market Overview 

S&P expects core inflation in Egypt to reach its peak at 39% in October 2023 before retreating to 35% by the end of the year. It also expects the depreciation of the Egyptian pound to EGP37 by the end of 2023.   The Russian steel giant Novostal-M Holding seeks to expand its presence in Egypt by establishing a new factory and undertaking various projects.    The government plans to offer two ri...

Market Overview 

The CBE is preparing to launch a new index which links the Egyptian Pound with a basket of international currencies and gold with various weights in order to determine a more realistic exchange rate instead of depending solely on the USD. Misr Life Insurance finalized preparations to offer 45% of its shares in IPO. Investors will be able to bid for industrial land from Wednesday, 16 Aug, through W...

Market Overview 

Egypt has signed a USD 500 mn agreement to purchase wheat from Emirati agribusiness Al Dahra, over 5 years. The pact will see Egypt import USD 100 mn of milling wheat a year, with the Abu Dhabi Exports Office (ADEX) providing low-cost financing.  Misr Life Insurance Company has launched the first USD Dollar denominated pension policy for Egyptians abroad, with installments between USD50-10,000. Th...