Egypt is considering borrowing 2.5 billion USD from banks

Newsletter

14 Aug 2022

Egypt is considering borrowing 2.5 billion USD from banks. First Abu Dhabi Bank and Abu Dhabi Commercial Bank lead the loan arrangement. This comes while the urgent need for the Egyptian economy, amounting to 400 billion dollars, to secure more foreign liquidity, at a time when the state is seeking to bridge the deficit. As high oil and commodity prices hit one of the world’s largest wheat importers, the number of tourists from Russia and Ukraine has declined. The conflict put pressure on the Egyptian currency and pushed the country to request a loan from the IMF. Egypt is seeking to raise 41 billion USD to pay off the current account deficit and outstanding debts by the end of 2023. (Bloomberg Asharq)

Egypt came among the top five markets in the Middle East and North Africa (MENA) in terms of investments in mergers and acquisitions (M&A) during the first half (H1) of 2021 ranking second with 65 deals worth 3.2 billion USD.
The UAE topped the region with 14.2 billion USD worth of investments injected into 105 deals. Saudi Arabia occupied third place with investments amounting to 2.8 billion USD in 39 deals. Moreover, Morocco and Oman came in fourth and fifth spots with deals worth 1.8 billion USD and 700 million USD, respectively. The MENA region saw 359 M&A deals valued at 42.6 billion USD in the January-June period, which reflects a 12% year-on-year growth in the number of deals. (EY)
Heliopolis for Chemical Industries partners with German company to produce epoxy.
Heliopolis for Chemical Industries signed a protocol with German chemicals manufacturer Bodo Möller for cooperation in the production and marketing of epoxy insulators and specialized paints. Chairman of Bodo Möller Frank Haug said that, under the protocol, his company will transfer technical knowledge to Heliopolis for Chemical Industries. Among the German company’s obligations under the protocol is providing the Egyptian partner’s staff with training. (Arab Finance)
Egytrans posts 218.7% hike in Q2 consolidated profit.
Consolidated net profit after tax reached 20.15 million EGP in Q2 2022, compared to 6.33 million EGP in the same period last year. Meanwhile, the company’s standalone net profit after tax jumped by 99.1% YoY to 29.60 million EGP in Q2 2022 from 14.86 million EGP. EGYtrans is an Egypt-based company engaged in international sea, air, and land transportation services. (EGX)
And for our startups talks, Convertedin secures 3 million USD in seed funding round.
Marketing automation platform Convertedin announced that it raised a 3 million USD seed funding round from global and regional investors. The financing round was led by Saudi Arabia-based tech investor Merak Capital and early-stage venture fund 500 Global. (WAYA)
Food-tech startup BONBELL raises 350,000 USD in initial funding round.
Egyptian food ordering technology startup BONBELL has secured 350,000 USD in an initial funding round through a Canadian angel investor for the App services development and boosting the numbers of users and daily orders. BONBELL is seeking to increase the number of restaurants it covers to 750 by the end of 2022. The startup is negotiating with two venture capital funds in Europe and the GCC to raise 10 million USD in seed funding by the end of the year. BONBELL App succeeded in attracting more than 12,000 users in less than six months.(Ara Finance)
Swvl to sell 20 million USD shares to US-based investor.
Swvl Holdings finalized a private placement deal with a US institutional investor to sell shares for a consideration of around 20 million USD which will be subject to further deductions, including commissions and other expenses. The deal will be executed on approximately 12.121 million shares at a combined purchase price of 1.65 EGX per share. The agreement includes an opportunity for the investor to buy more shares from Swvl with expected gross proceeds of 30 million USD. Moreover, the deal is expected to be closed on August 12th after meeting the customary decision. (WAYA)
The Saudi Public Investment Fund (PIF) has purchased 25% of e-finance for Digital and Financial Investments’ (EFIH) shares.
Accordingly, the PIF now is the largest single shareholder in e-finance Investment. In the same vein, National Investment Bank (NIB) has sold 462.22 million shares, accounting for a 25% stake, in e-finance for a total value of 7.49 billion EGP, equivalent to an average price of 12.98 EGP per share. It is worth noting that one of the largest sovereign wealth funds in the world, with 620 billion USD in assets under management at the end of the first quarter (Q1) of 2022. (EGX)
Maersk plans to invest 500 million USD in Suez Canal.
Danish shipping company Maersk is planning to inject around 500 million USD worth of investments into the Suez Canal Container Terminal in East Port Said. The new investments will be used in the development of a new container dock with a length of 1,000 meters beside the current 500-meter dock at the terminal. The project will also include increasing the number of cranes to 30 powered by electricity, instead of diesel, to curb emissions at the terminal and transform it into a green terminal by the end of 2030. (Al Mal)
Mogamma El Tahrir to turn into 200 million USD Cairo House hotel.
The Sovereign Fund of Egypt (TSFE) entered into an agreement with a group of companies and an Egyptian-American consortium to transform Mogamma El Tahrir into a luxury hotel under the name of 'Cairo House' with $200 million investments. A pyramid-like shape will be created on the façade of the building to maintain the visual identity of Cairo that connects the grandeur of the past to the development of the present. After its completion, the project is expected to create more than 500 direct jobs, in addition to the jobs it would create during construction. (Al-Ahram Gate)
The share of "Vodafone" and the retail sector raises the profits of "Telecom Egypt" 38%.
Telecom Egypt owns 45% of Vodafone Egypt's shares, while the Egyptian government owns 80% of Telecom Egypt shares. For the first half of the year, the company's profits fell 2%, on an annual basis, to 3.8 billion EGP, despite an increase in revenues of 17% to 20.4 billion EGP. (EGX)