Egypt’s debut sukuk sale 4x oversubscribed at 6.1 billion USD

Newsletter

23 Feb 2023

Egypt’s debut sukuk sale 4x oversubscribed at 6.1 billion USD. Egypt has succeeded in issuing its debut sukuk as it was oversubscribed by more than 4x at a value of around $6.1 billion, Minister of Finance Mohamed Maait stated yesterday. The country’s first sukuk sale has witnessed a notably heavy appetite from investors, with the participation of over 250 investors from global markets, Maait remarked. The Islamic bond issuance has attracted several investors from the Gulf states and East Asia, as well as a number of European countries and the US, he pointed out. (Bloomberg Asharq)

The Minister of Finance revealed yesterday that Egypt will offer additional sukuk worth $3.5 billion within 3 years
“Egypt has an international program for issuing sovereign sukuk for the next several years at a value of 5 billion USD, of which we subtracted 1.5 billion USD, and the remaining 3.5 billion USD may be offered over three years on average”, the minister stated. The finance will help Egypt replenish stocks after a USD 1.25 bn eurobond repayment due yesterday; those bonds carried an interest rate of 5.577%, according to Reuters. (Bloomberg Asharq)
The sale could pave the way for more issuances this year as the government looks to finance upcoming debt repayments
The Finance Ministry had been planning to issue its maiden 500 million USD CNY-denominated panda bond in China in 1Q 2023, and previously said it would issue 500 million USD of sustainable development bonds before the end of the current fiscal year. Moody’s last week gave a (P) B3 rating to a potential USD 5 bn sukuk program which would be used to finance investment and development projects. The rating agency downgraded Egypt’s sovereign credit rating due to the country’s increased vulnerability to external shocks. (Bloomberg Asharq)
The government will raise metro fares on tickets for more than 25 stops to EGP 12 from EGP 10
Transport Minister Kamel El Wazir said. The hike will likely come into effect in October when more stations on Line 3 are opened. There are no plans to raise the prices of other fares, he said. The government hinted last summer at the possibility of hiking metro fares but the plan never materialized despite rising expenses to keep the underground system running. (Hapi Journal)
Madbouly follows up on project for localization of EV industry
The Dean of the Applied Research Department at the Arab Academy for Science, Technology, and Maritime Transport (AASTMT) Mohamed El Ghamry reviewed the components of EV that will be manufactured locally for the first time. He expected high returns from this project, whether in terms of investment or job opportunities. He indicated that a complex will be established to manufacture EVs on an area of 50,000 square meters, and arrangements will be made to deepen the local component in mechanical design, motors, and electronic circuits, to reach 100%. (Arab Finance)
The Grand Egyptian Museum is now accepting online reservations for a limited number of guided tours
The guided tours include access to the exterior gardens, the Conference Center, the commercial area with cafes and restaurants, and the Atrium with its colossal statue of Ramses II. Visitors can choose from four different time slots between 9am-6pm, with tickets ranging between 75-150 EGP for Egyptians, and 500-1k EGP for non-Egyptians. (Al Mal)
Saudi Almarai mulls future business expansion in Egyptian market
The Saudi multinational dairy company Almarai is mulling over new projects and further investment in Egypt over the coming period. The plan includes exporting agricultural ingredients and raw materials from Egypt to Almarai’s factories in Saudi Arabia at an estimated value of about 240 million USD annually. Madbouly praised Almarai’s contribution to the Egyptian economy and to the food industry in particular. Almarai relies a lot on expanding its exports from Egypt to neighboring countries. (Al Mal)
Talks over Saudi Arabia's acquisition of United Bank of Egypt stalled
Negotiations over Saudi Arabia’s acquisition of the United Bank of Egypt have ended due to a dispute over the valuation of the estimated multimillion-dollar deal. The talks are over at a time when the Egyptian government works on raising the necessary funding to bridge the financing gap. The discussions about the Central Bank of Egypt (CBE)-owned lender stumbled over how to calculate the impact of the devaluation of the Egyptian pound on the deal. (Bloomberg Asharq)
e-finance plans for business expansion abroad in collaboration with Saudi PIF
E-finance for Financial and Digital Investments is seeking to expand its business across different foreign markets in the second or third quarter of this year in collaboration with the Saudi Arabian Public Investment Fund (PIF), e-finance’s Chairman Ibrahim Sarhan said. The Saudi PIF acquired about a 25% stake in e-finance in 2022. The company has a roadshow in Dubai last week, and it will start another one in Saudi Arabia in cooperation with PIF. (Bloomberg Asharq)
Moreover, e-finance is earmarking EGP 2 billion in new investments for subsidiaries during 2023
On February 21st, e-finance announced that it reported a 54.67% year-on-year (YoY) leap in its consolidated net profits after tax and non-controlling interests in 2022, recording EGP 803.924 million, compared to EGP 519.738 million in 2021. The board of directors of e-finance also approved the proposal of paying cash dividends worth EGP 0.23 per share to shareholders, which is subject to the approval of the company's ordinary general meeting (OGM). (Bloomberg Asharq)
International firms start FV study for 7 state-owned hotels ahead of stake sale.
International companies are currently conducting the fair value (FV) study for seven state-owned hotels in Egypt in preparation for offering some shares in them to strategic investors, Minister of Public Business Sector Mahmoud Esmat said. A private company was established with a capital worth EGP 10 million, in which the Holding Company for Tourism and Hotels (HOTAC) and the Egyptian General Company for Tourism and Hotels (EGOTH) hold large stakes, Esmat added. (Bloomberg Asharq)
It was previously reported that The Sovereign Fund of Egypt (TSFE) seeks to offer a 30% stake in the holding company owning seven hotels for Gulf funds and investors in the first quarter (Q1) of this year
These hotels are Cairo Marriott Hotel, Sofitel Legend Old Cataract in Aswan, Marriott Mena House, Sofitel Winter Palace Luxor, Steigenberger Cecil Alexandria, Mövenpick Aswan, and “Elephantine” Aswan. Egypt aims to promote the participation of the private sector to accelerate the pace of economic growth by offering state-run companies on the Egyptian Exchange (EGX), as well as through direct partnerships in projects and holding companies with major investors. (Bloomberg Asharq)