The Ministry of Electricity and Renewable Energy is preparing to launch major tenders for companies operating in the Egyptian market

Newsletter

14 Sep 2021

For our top talks today, the Ministry of Electricity and Renewable Energy is preparing to launch major tenders for companies operating in the Egyptian market in the coming weeks to supply the needs of its affiliated entities and implement some infrastructure projects, with a value-added tax of 5% instead of 14%. The Ministry plans to increase the lengths of networks with a voltage of 500 kilovolts to about 6006 kilometers during the current year, and to implement an investment plan worth 112 billion EGP by the end of 2022, through which a number of strategic projects of the Ministry of Electricity will be implemented.

Moreover, Egypt’s public treasury has allocated a total of 115 billion EGP for green incentives to replace 5,000 obsolete taxis and private cars and 130 minibuses with new natural gas-run ones under the old vehicles’ replacement initiative.
This initiative is a model of the developmental partnership with the private sector, which aims to catalyze domestic vehicle manufacturing, increasing the productive capacity and maximizing the local components in all industries. The initiative also intends to spur investment in green economy-related projects, raising Egypt’s economic growth as well as foster inclusive and sustainable development.
Also, the National Bank of Egypt is finalizing the list of green and environmentally friendly projects, to be financed by the French Development Agency, with a value of 100 million EUR
with the aim of expanding opportunities for financing projects related to climate preservation and sustainable development in Egypt. The financing includes 4 sectors, which are wastewater treatment, sustainable transport, eco-tourism, and waste management, pointing out that the interest rate is considered very low, but it has not yet been determined.
Equally important, the Ministry of Agriculture plans to expand the cultivation of natural colored cotton without any genetic interventions “harmful hybridization”, as it succeeded in planting an acre of propagation for the first time this year,
which is sufficient for planting 10 acres in the second season and 100 acres in the third season. Also, the Internet banking transfers hiked 70% to 1.4 trillion EGP in 2020/2021, compared to 825 billion EGP in 2019/2020.
Moving to our companies talks, first, EFG Hermes announced today the completion of the first issuance transaction worth 322.550 million EGP under the securitization program for Valeo.
This deal is a major leap for VALEO, in light of the high demand for value-added services, which include installment sales programs and credit facilities supported by financial services technology.
Second, Fawry for Banking Technology and Electronic Payment (FWRY) announced that its board of directors has approved to contribute to the establishment of Fawry for Consumer Finance with 7.49 million EGP in capital.
The new company will be established with a total capital of 10 million EGP. In addition, EgyLease, the leasing arm of Industrial Development & Workers Bank of Egypt, is working on issuing 750 million EGP in securitized bonds. The company is in talks to manage issuances for Al Oula, Palm Hills, and Mountain View. Noting that Al Oula is planning an 650 million EGP securitized bond sale, which still needs to be signed off on by the company’s board.
Furthermore, Egypt-based fintech Kashat announced that it has successfully raised 1.75 million USD in a bridge funding round.
The fintech and microloan solutions provider plans to utilize its newly acquired funds to further support and develop its platform, as well as expand its operations. Also, Fine Hygienic Holding’s (FHH) unit, Fine Egypt Al Bardi Paper Mill, is among Egypt’s top exporting companies in 2020, achieving the highest export rates in the sector of printing, packaging and paper. It is worth mentioning that the company’s exports volume surged by 26% Year on Year in 2020. Fine Egypt has major export markets worldwide including Europe and the UK, Russia, the Middle East and North Africa, in addition to East and West Africa.
Likewise, the total investment expenditures expected to be injected into the concessions of the Gulf of Suez Petroleum Company (GUPCO) during the current fiscal year 2021/2022 revolve around 400 million USD.
It is worth noting that the UAE Dragon Oil Company has an ambitious vision to exploit the GUPCO concession in the Gulf of Suez, and seeks to double its production rates for the coming period. GUPCO is currently implementing the industrial wastewater treatment project in the Gulf of Suez in line with the Egyptian environmental law and within the framework of maximizing sustainability as a main hub for petroleum operations and activities in the Gulf of Suez.
By the same token, the Abu Dhabi National Oil Company (ADNOC) announced that it has set the initial public offering price for its drilling unit, giving ADNOC Drilling a valuation of 10 billion USD.
ADNOC revealed its intention to sell at least 7.5% of ADNOC Drilling through an initial public offering at 2.3 AED (0.6262 USD) per share, to raise at least 750 million USD from the deal. This is the second public offering of a company owned by the oil giant in Abu Dhabi. ADNOC will sell at least 1.2 billion shares during the offering, while retaining the right to increase the size of the offering at any time before the end of the subscription period.
Finally, Orascom Investment Holding (OIH) incurred a consolidated net loss attributable to the parent company of 56.56 million EGP in the first half (H1) of 2021, cutting its losses from 284.23 million EGP in H1-2020.
Meanwhile, the company suffered a standalone net loss of 59.58 million EGP in H1-2021, compared to a net profit of 49.78 million EGP in the year-ago period.