The value of Egypt’s first sovereign sukuk issuance would be around 500 mn USD

Newsletter

05 Oct 2021

For our top talks today, first, the Egyptian Ministry of Health is cooperating with the Egyptian Exchange (EGX), the Egyptian Competition Authority (ECA), and the Financial Regulatory Authority (FRA) to mull over the requirements and conditions for implementing deals within the healthcare sector over the coming period. Prime Minister Mostafa Madbouli decided to form a committee headed by the health minister to set the conditions for merger and acquisition deals in the private healthcare sector. Moreover, the sources stressed that the committee plans to approve some of the offers submitted to take over Alexandria New Medical Center’s (Alex NMC) (AMES). (Source: Al-Mal)

Second, the value of Egypt’s first sovereign sukuk issuance would be around 500 million USD. The first green bonds issuance valued at 500 million USD, which was oversubscribed to 750 million USD backed by the positive offering conditions, noting that the value of the first sukuk issuance would not be large and it would be similar to the first green bonds issuance.
The executive regulations for the sovereign sukuk law are likely to be issued before the end of 2021, pointing out that the projects that will guarantee the sukuk issuance have not been determined yet. In June, the House of Representatives approved the sukuk issuance draft law. (Source: Al-Mal)
Not to mention, Adabiya port receives the largest crane in the world with a tonnage of 1200 tons and a weight of 400 tons to serve national projects.
In a statement issued by the Media Office of the Economic Zone, it was announced that this winch was received disassembled to be installed by a national contracting company, which will be used in the construction of the longest mast in Al-Shaab Square in the New Administrative Capital, where the height of this mast is 191 meters. (Source: Al-Mal)
Moving to our companies talks, Vortex Energy, a global renewable energy platform managed by EFG Hermes (HRHO), announced it has entered a definite agreement with Spain’s Ignis Energy Holdings. Under the agreement, Vortex Energy will invest 625 million EUR into Ignis through its newly launched Vortex Energy IV and its co-investors.
The sum of 625 Million EUR will be injected into Ignis through a series of capital injections that will be deployed over the coming years subject to specific conditions. This will enable Ignis to finance its growth plan to become a fully integrated renewable IPP in Spain and other countries. (Source: EGX)
Also, for EFG-Hermes, the financial and investment institution in emerging and frontier markets, today announced the launch of a strategic partnership with Microsoft in the field of cloud computing aimed at accelerating the company's digital transformation and promoting innovation in the financial services sector.
The two companies will also create a secure and robust digital transformation roadmap in line with EFG Hermes' digital strategy, which will result in a modern and more flexible information environment that contributes to increasing employee productivity. (Source: Al-Mal)
Furthermore, Zoomcar, an India-based car rental company, announced the expansion of its business in the Middle East through Egypt. It is worth noting that Egypt has low rates of car owners, and it has a higher and increasing number of people interested in moving around freely at reasonable prices, noting that this represents an opportunity for Zoomcar.
The Indian company has appointed Hany Olma as the regional manager for Egypt, and is looking forward to benefiting from his expertise to expand its business in Egypt. Through Egypt, the company aims at building fruitful partnerships to grow its business in the Middle East and North Africa. (Source: Arab Finance)
Also, Modern Shorouk Printing and Packaging (SMPP) announced that its board of directors has approved the purchase offer submitted by National Printing Company to acquire Modern Shorouk Printing at a price of 74.5 EGP per share.
In September, the Financial Regulatory Authority (FRA) approved the mandatory tender offer (MTO) submitted by National Printing Company to acquire Modern Shorouk. The MTO includes buying up to 1.078 million shares, representing about 8.2% of the company's shares, for 74.5 EGP per share. Currently, the National Printing Company owns 89.9% of Shorouk for Modern Printing. (Source: EGX)
In addition, Talaat Moustafa Group Holding (TMGH) is considering expansion in Saudi Arabia and Iraq. The two countries enjoy a great demand for residential units, which represents a huge opportunity for major real estate developer.
The group has formed a committee to study investment opportunities after receiving requests from a number of Arab countries to expand in these countries. It is worth noting that Mostafa has welcomed a high-level Saudi delegation headed by the Minister of Housing of Saudi Arabia Majed bin Abdullah Al-Hogail. (Source: Al Arabiya.net)
Moreover, the Egyptian Environment Protection Agency (EPA) decided to re-evaluate the fine amount signed against Orascom Development Egypt (ORHD) due to the violations and environmental damages caused by El Gouna Resort.
Orascom Development announced it has been negatively impacted from the fine of 33.9 million USD imposed by the EPA. However, the Ministry of Environment reconsiders the possibility of reducing the fine amount. (Source: Al-Mal)
And for our EGX Talks, the sales of Tenth of Ramadan for Pharmaceuticals Industries and Diagnostic Reagents (Rameda) (RMDA) rose by 32.8% year-on-year during the first eight months of 2021, recording 816 million EGP.
Accordingly, Rameda has a market share of 1.5%, ranking the 19th among pharmaceutical companies in terms of sales, the sources revealed. As for August 2021, the company generated sales of 113 million EGP through pharmacies, with a market share 1.4%. (Source: EGX)