EGP closes at record low against the greenback last Thursday

Newsletter

02 Oct 2022

EGP closes at record low against the greenback last Thursday, breaking past the December 2016 low seen in the wake of what was an historic float. The EGP fell an additional 3 piasters last Thursday to record the purchase price of 19.4970 pounds and the selling price of 19.6076 pounds, breaching the record low 19.5605 low set five years ago. The EGP has lost 24.1% of its value against the USD since the devaluation in March. While the EGP has slid against the greenback, it has appreciated 17% against the GBP, 13% against the JPY and 8% against the EUR since March as currencies around the world lost ground to the USD. Under the leadership of Hassan Abdalla, the central bank has been allowing the EGP to drop steadily against the greenback: The currency has eased almost 2% since 18 August, when he replaced Tarek Amer as governor. (Hapi Journal)

The price of the dollar rises 3 piasters against the Egyptian pound in most banks.
The price of the dollar against the pound rose 3 piasters during trading last Thursday, in most banks in the banking sector, and the highest selling price reached 19.59 pounds in 9 banks: CIB, Arab African, Alexandria, Abu Dhabi Islamic, Arab International Bank, and United Bank, Mashreq, the Suez Canal, and the Egyptian Arab Land Bank, compared to the selling price of 19.56 pounds last Wednesday. (Hapi Journal)
Madbouly welcomes launch of Egyptian Qatari business forum.
The Egyptian Prime Minister Mostafa Madbouly welcomed the launch of an Egyptian-Qatari business forum on a mutually agreed date. The Qatari Ambassador to Egypt Salem Mubarak Al-Shafi said that the coming period will witness an increase in the volume of Qatari investment in Egypt. Moreover, Madbouly announced that President Abdel Fattah El-Sisi directed the government to facilitate all procedures for Qatari people seeking to invest in Egypt. It is worth noting that the trade between Qatar and Egypt reached 44.8 million USD in 2021, up from 25.4 million USD in 2020. On September 13th, El-Sisi flew to Doha to begin an official two-day visit, which was his first to Qatar. (Hapi Journal)
The PIF has offered potential investors a look at its finances as it takes its first green bond to market.
The 606 billion USD sovereign wealth fund revealed that its total shareholder returns averaged 12% annually in the past five years, since Crown Prince Mohammed bin Salman took control of the fund in 2017. PIF is a major investor in Egypt. The fund has pledged to invest some USD 10 bn in Egyptian companies as part of Saudi efforts to support our external position, which has been rocked by soaring commodity prices. It has already acquired minority stakes in four EGX-listed companies for USD 1.3 bn, and has set up an investment arm in Egypt to facilitate investments in the country. The fund is looking to invest in the infrastructure, real estate, healthcare, financial services, food and agriculture, manufacturing and pharma sectors. (The Wall Street Journal)
Madbouly chairs 1st meeting of Egypt’s automotive industry committee.
The committee is responsible for ratifying the necessary policies, plans, and strategies to develop the automotive industry. Moreover, the committee is in charge of setting the framework for legislative and administrative reforms to overcome obstacles in the vehicles industry. Egypt 2030 strategic goals include attracting new investments as well as supporting the capabilities of local importers. Moreover, the auto committee meeting discussed offering customs duty cuts on imported inputs and postponing the payment of customs tax for companies for three months from the date of customs release. It is worth noting that 90% of cars detained by customs authorities were released, adding that there is an increased demand in the local market. (Al Mal)
Egypt allows investments of 75% of annual pension fund’s surplus in T-bills, T-bonds.
The new social insurance and pension law in Egypt allows the investment of not less than 75% of the surplus of the pension fund annually into treasury bills and bonds to protect and save money for pension holders. The statement noted that most countries in the world are investing the surplus of pension funds annually in T-bills and T-bonds as safe investments. The United Estates invests more than 90% of the surplus of social insurance in T-bills and T-bonds, the statement added. The MoF’s Media Center maintained that the state’s public treasury is obliged to pay due annual installments to the National Organization for Social Insurance (NOSI). (Arab Finance)
Moving to our EGX and companies talks, EFG Hermes Corp-Solutions closes 2 billion EGP securitization issuance.
EFG Hermes Corp-Solutions, a wholly-owned subsidiary of EFG Hermes Holding (HRHO), has concluded its second securitization bond issuance at a value of 2 billion EGP. The securitization issuance is backed by receivables portfolio of 2.9 billion EGP, which represents 24 lease contracts. The leading investment bank EFG Hermes has successfully concluded advisory on the 2 billion EGP securitization bond offering. The bond comprises three tranches; tranche A worth 260 million EGP with a tenor of 13 months, tranche B which is valued at 890 million EGP with a 36-month tenor, and Tranche C valued at 850 million EGP with a tenor of 72 months. Tranche A received a credit rating of AA+ from Middle East Ratings and Investor Services (MERIS), while Tranches B and C received ratings of AA and A- from MERIS. (Arab Finance)
EFG Hermes advises on Dubai-based Salik’s IPO as joint bookrunner.
The investment banking division of EFG Hermes Holding (HRHO) has advised on the initial public offering (IPO) of Dubai’s Salik on the Dubai Financial Market (DFM) as a joint bookrunner. EFG Hermes acted as joint bookrunner on the IPO as part of the banking syndicate advising the issuer and the selling shareholder. As per the transaction, 1.9 billion ordinary shares or 24.9% of Salik’s capital were offered at a price of 2 AED per share, implying total gross proceeds of 3.7 billion AED and a market capitalization of 15 billion AED. Trading on Salik’s stock will begin on September 29th under the ticker of (SALIK). (Arab Finance)
Raya Holding’s Raya Electronics plans to expand into 10 new governorates next year.
after inaugurating one of the biggest electronic stores in New Cairo with investments of 35 million EGP. The company aims to increase the number of Raya's branches to 70 by the end of 2022, in addition to expanding within 10 new governorates other than Cairo during the next year. (Hapi Journal)
valU enters partnership with Heliopolis Sporting Club.
valU, a subsidiary of EFG Hermes Holding (HRHO), has entered a partnership with Heliopolis Sporting Club to provide seamless financing and payment solution to the club. Under the partnership, valU will offer financing solutions on new memberships for the club’s El Shorouk city branch and club services. This marks valU’s second partnership with a leading sports club in Egypt. Moreover, a Sha2labaz booth will be placed inside the club to offer its services to customers. Sha2labaz is a financing program that was launched in early 2022. (Hapi Journal)