Progressing towards Egypt’s first inaugural panda bond offering

Newsletter

23 May 2023

Progressing towards Egypt’s first inaugural panda bond offering. The Minister of Finance has confirmed that Egypt is dedicated to successfully hosting the Asian Bank’s annual meetings in Sharm El-Sheikh next September. The summit, marking the first face-to-face gathering in four years due to the pandemic, aims to foster dialogues to enhance development partnerships between international and regional institutions, developing nations, and emerging economies. This aligns with Egypt’s effort to maximize both local and international investments in key sectors, promote Egyptian investment opportunities, and expand the Asian Bank’s role in private sector development financing. (Hapi Journal)

Agricultural exports from Egypt witness a 14.4% Year-on-Year increase in nearly five months.
From January 1st to May 17th, 2023, Egypt's agricultural exports have experienced a growth of 14.4%- or 432,342-tons year on year (YoY), amounting to 3.427 million tons, as opposed to 2.995 million tons in the corresponding period last year. The primary exports in the said period comprised citrus fruits, potatoes, onions, sweet potatoes, pomegranates, garlic, strawberries, green beans, guavas, tomatoes, and grapes. The largest contributor to Egyptian exports were citrus fruits with 1.687 million tons, followed by potatoes with 668,695 tons and onions at 238,916 tons. (Arab Finance)
Egypt aims to attract investments through fresh business reform measures.
The Prime Minister Moustafa Madbouly discloses a reform package to enhance investments: In a press conference yesterday, Madbouly provided detailed insights into each of the 22 resolutions adopted by the Supreme Investment Council at its inaugural meeting on Tuesday. In a session that lasted for nearly an hour, Madbouly dissected these decisions and discussed their implications for Egypt's investment environment. (Enterprise)
EBank's Q1 profits surge by 85% YoY.
The Export Development Bank of Egypt (EBank) has witnessed a substantial increase of 85.04% in its consolidated profit for Q1 of 2023, as compared to the same period the previous year. The consolidated profit amounted to 556.538 million EGP in Q1 2023, significantly up from 300.763 million EGP in Q1 2022. The bank's net interest income more than doubled, reaching 1.166 billion EGP. Standalone net profit after tax also saw a considerable rise, reaching 501.799 million EGP in Q1 2023, up from 288.381 million EGP in the same period in 2022. (Arab Finance)
Taxes' mandates electronic invoicing for import and export transactions.
The Egyptian Tax Authority has mandated the use of the electronic invoice system for interactions with the Customs Authority, including import and export transactions, effective from July 1, 2023. According to a statement released yesterday, taxpayers failing to adopt the electronic invoice system will be barred from engaging with the customs authority from July onwards. Noting that as of July 1, 2023, only electronic invoices will be accepted as evidence for deductible costs and expenses, as well as for deducting or refunding the value-added tax. (Economy Plus)
Al Taamir Leasing and Factoring Al Oula completes 1.1 billion EGP securitization deal.
Al Taamir Leasing and Factoring Al Oula has successfully completed a securitized bond offering worth 1.1 billion EGP. The bond offering comprised three tranches, with durations ranging from 13 to 53 months, and received ratings of AA+, AA, and A from the Middle East Rating and Investors Service (MERIS). (Enterprise)
Stock market experiences 0.36% surge in morning session, with the seventieth day index gaining 0.74%.
The Egyptian Stock Exchange experienced an upward trend at the start of today's trading, with the primary EGX30 index escalating by 0.36%, registering a trading level of 16921 points. Commercial International Bank (CIB), the most influential stock in the EGX30, saw a 0.58% uptick, trading at 52 Egyptian pounds. The EGX70 and EGX100 indices, which maintain equal weights, witnessed a 0.74% and 0.63% increase respectively. The market saw a trading volume of 230.718 million EGP across 169 companies via 10,404 thousand transactions. (Hapi Journal)
Arab Investment acquires Al-Ahly of Greece-Egypt's letter of guarantee portfolio.
The Arab Investment Bank has confirmed a definitive agreement for acquiring the existing Letter of Guarantee portfolio from the National Bank of Greece, Egypt. The CEO and Managing Director of the Arab Investment Bank, Tamer Seif, stated that the deal represents a significant addition to the bank due to the portfolio's superior client base and high quality. (Economy Plus)
The Arab Insurance Brokers Association names an interim board of directors.
The Association of Arab Insurance Brokers' General Assembly has elected an interim board of directors assigned with 'specific tasks' that need 'swift' action. This board will organize and manage the association's operations until the next assembly meeting, scheduled in the coming months. (Hapi Journal)
Egyptian 'E-finance' looks to expand in Saudi Arabia to boost dollar revenue.
E-finance, an Egyptian financial and digital investment firm, has begun operations in Saudi Arabia. The company is banking on the Saudi market to be a substantial source of hard currency, an asset that is scarce in its main market, Egypt. Ibrahim Sarhan, the Chairman and Managing Director, disclosed to 'East Economy' that the company's Riyadh branch would commence operations in the third quarter of this year. In an interview with Alaa Judy, Sarhan stated that e-finance anticipates the Saudi market to provide hard currency and generate higher revenues and profits owing to cost differences that would give them a competitive advantage. (Bloomberg Asharq)