Tenth of Ramadan dry port tender bids pushed to April
Tenth of Ramadan dry port tender bids pushed to April. Four consortium bidders for the Tenth of Ramadan dry port project will submit their financial and technical proposals on 30 April. The state wants to give bidders the chance to readjust their financial reports in response to ongoing fluctuations in the exchange rate. The bidders include a consortium of Elsewedy Electric with French firms CEVA Logistics and CMA CGM; Orascom Construction and Abu Dhabi Ports Group; a French consortium including Bolloré Logistics and Meridiam; and a consortium led by MSC. (EGX)
The Financial Regulatory Authority (FRA) has issued new regulations designed to mitigate credit risk for ins. companies.
The amendments aim to encourage lenders to run background checks on borrowers before granting them loans and reduce ins. companies’ exposure to credit risk. Under the regulations, lenders will be required to take a 25% haircut on any debts owed by a borrower who defaults. This will reduce the insurer’s risk, leaving them responsible for paying only 75% of the unpaid debt. (Al Mal)
Our banking sector can withstand the EGP devaluation, according to Fitch Ratings
Egyptian banks’ regulatory capital ratios can withstand further EGP depreciation as they are supported by healthy internal capital generation. Even further sharp currency falls should not directly trigger rating downgrades. Our large private-sector banks are better equipped to sustain the currency devaluation than the sector’s two largest public banks, the National Bank of Egypt and Banque Misr. Fitch Ratings Report)
The 25% CDs will “squeeze NBE’s and Banque Misr’s net interest margins (NIMs)
while private-sector banks will be able to make up for deposit outflows thanks to the CDs through higher yields on sovereign securities. The EGP “may remain under pressure in 2023” thanks to the 5.4 billion USD backlog at ports (equivalent to c. 16% of our FX reserves) and external funding needs of 19 billion USD. It remains to be seen whether the Central Bank of Egypt will let the exchange rate and interest rates adjust sufficiently to attract new portfolio flows. (Fitch Ratings Report)
CBE preempts importers’ demand for USD for 6 months
The Central Bank of Egypt (CBE) has called on banks operating in the country to calculate the expected volume of import orders for the upcoming six months, in order to set the expected volume of demand for hard currency. The central bank has verbally requested banks to provide a list of requests regarding opening letters of credit (LCs) for at least 180 days as of December 17th, in addition to enabling documentary collection with up to a maximum of 500,000 USD, excluding shipments with advance payments. (Asharq Business)
Madbouly says solving investors' problems sends positive messages to business community
Prime Minister Mostafa Madbouly said that solving investors' problems, responding to their demands, and reaching settlements that contribute to the completion of projects is a positive message to domestic and foreign business communities which creates a more attractive climate for investments in Egypt. (Hapi Journal)
UK-funded CFA Egypt to support 9 low-carbon climate projects in Egypt
The UK-funded Climate Finance Accelerator (CFA) Egypt has selected nine innovative low-carbon climate projects from across Egypt to form its first cohort to receive technical and financial support to help them attract needed investments. The nine projects were chosen out of almost 50 applications in the renewable energy, waste, blue economy, agriculture, and manufacturing sectors. (Al Mal)
Vodacom is acquiring an additional 0.02% (49.5k shares) of Vodafone Egypt
From minority shareholders for 17.92 EUR a piece after the subscription period on its offer closed last Tuesday. The South African subsidiary of Vodafone Group had initially sought to purchase as much as 0.05% of the company (124.6k shares) from minority shareholders in tandem with acquiring the parent company’s 55% stake in December. (Al Mal)
Arafa Holding’s board of directors approved the establishment of a fully-owned Dubai-based arm
No date has been announced for the opening of the Egyptian retailer’s branch in the UAE. Arafa recorded consolidated net sales of 165.9 million USD in 9M 2022, up 38% from a year ago, according to a consolidated earnings release (pdf) published Sunday. (EGX)
ODIN Investments (ODIN) is establishing a tourism real estate fund
In partnership with the Iraqi businessman Namir El-Akabi, Chairman of Amwaj International, Hashim Al Sayed, Vice Chairman and CEO of ODIN. The fund targets 3 billion EGP, and will attract tourism assets and cash liquidity of about 500 to 600 million EGP immediately. (Al Mal)
valU partners with Infobip to implement their WhatsApp Business Platform
The company’s goal is to simplify and enhance its customer journey by giving them access to all the information they might want. Consequently, valU customers can now receive notifications, reminders, and special offers through WhatsApp. Infobip helps brands enhance their own applications with real-time communication and digital interaction capabilities. (Hapi Journal)
Tabby, a leading shopping and financial services app, secures 58 million USD in Series C funding
The funding round was led by Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures, and Endeavor Catalyst. By securing the Series C round, the company’s valuation stands at 660 million USD. The secured amount will be used to expand Tabby’s product line and back its operations. (WAYA)
ADIB’s 1st phase of capital increase subscribed by 93.48%
During the subscription first phase, 93.48 million shares were subscribed. The remaining 6.519 million unsubscribed shares will be offered in the second phase. On October 5th, ADIB’s ordinary general meeting (OGM) approved an 1 billion EGP increase in the bank’s issued and paid-up capital. (EGX)
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