Egypt, in partnership with Germany's Siemens, plans to sell shares in power plants it built | Zilla Capital

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03 Jan 2022

Egypt, in partnership with Germany’s Siemens, plans to sell shares in power plants it built

For our top talks today, Egypt, in partnership with Germany’s Siemens, plans to sell shares in power plants it built. The proposed offer on the Egyptian stock market is aimed at “maximizing the return on state-owned assets and refinancing state investments to ease the burden on the public budget”. Egypt’s minister for the public business sector, Hesham Tawfiq, last month told Reuters that an offering of stakes in four state-owned companies will be completed during the first half of 2022. Siemens built three 4.8-gigawatt power plants in Egypt, beginning in 2015, at a total cost of 7 billion USD. Each of the three gas-fired plants was billed at the time as the biggest in the world. (Reuters)

Egypt’s readymade garment exports rose 38% during the 11-month period between January and November 2021, according to the Head of Readymade Garments Export Council of Egypt (RMGEC) Marie Louise. Readymade garment exports amounted to 1.7 billion USD, compared to 1.3 billion USD in the same period of 2020.
Louise added that the US topped the countries importing from Egypt in the first 11 months of 2021, with a value of 1.04 billion USD in 11 months of 2021, compared to 726 million USD in the same period of 2020, an increase of 44%. Additionally, exports to Europe increased by 3% to record 320 million USD in 11 months of 2021, compared to 310 million USD in the same period last year, furthermore, exports to Arab countries increased by 128% to 235 million USD, compared to 83 million USD. (Arab Finance)
Suez Canal’s revenues increased 12.8% Year on Year (YoY) to 6.3 billion USD 2021, compared to 5.6 billion USD in 2020.
The number of vessels passing through the canal rose by 10% to 20,694 in 2021, compared to 18,830 in the earlier year. Additionally, the net tonnage across the canal reached 1.27 billion tons in 2021, 8.5% higher than 1.17 billion tons in 2020.. (Bloomberg Asharq)
Moreover, Egypt’s Prime Minister Mostafa Madbouly announced that Thursday January 6th will be a paid day off for public sector employees to celebrate Coptic Christmas Day.
The decision applies to ministries, governmental bodies, public facilities, municipalities, public enterprises, and public business sector companies. The prime minister is also expected to make the same announcement for private sector employees soon. (Al-Mal)
Moving to our investments talks, the Saudi Arabia Grant Management Committee signed several financing agreements to contribute to financing small, medium and micro enterprises (SMMEs), worth up to 300 million EGP.
The total sum is divided into 100 million EGP with the Industrial Development Bank, EGP 100 million with Banque du Caire, and 100 million EGP with the Enmaa Finance Company. The agreement signed with the Industrial Development Bank aims to finance a program to purchase new easy interest rates directed to Upper Egypt and other regions most in need, especially for micro-enterprises closest to growth to small enterprises. (Arab Finance)
Egypt’s startups raised well over 373 million USD in 2021 compared to over 100 million USD in 2020. One of these startups raised more than 1 million USD, while another one announced a multi-million-dollar investment.
Government-backed VC Egypt Ventures invested some 92 million EGP in startups and accelerator programs in 2021. Additionally, EFG-EV made two unannounced investments, with the outfit’s total reaching 1 million USD in 2021. (Arab Finance)
Turing to our EGX and companies talks, the Financial Regulatory Authority (FRA) has approved a securitization bond issuance by El Saeed Contracting and Real Estate Investment Company (SCCD) (UEGC) and its subsidiaries with a total value of 332.69 million EGP.
The authority has agreed on an 31.05 million EGP securitization bond issuance by El Saeed Contracting and Real Estate Investment and an 301.64 million EGP by its subsidiaries. EFG Hermes acted as the financial advisor, arranger, manager, promoter, and underwriter for the issuance. (EGX)
Egyptech Cables, a 99.98%-owned subsidiary of Elsewedy Electric (SWDY), has signed three contracts worth 440 million EGP to supply and install 132KV ground cables for the main substations of El Mutlaa Residential City in Kuwait.
The project will help in the power transmission needed for El Mutlaa Residential City, one of the main projects currently executed by the Public Authority for Housing Walfare for the development, renovation, and creation of Kuwait national income alternative resources. Egyptech Cables will focus on the design, supply, and installation of all works related to 132KV ground cables. (EGX)
Suez Canal Bank (CANA) participated in the securitization processes of two financial leasing and mortgage finance companies with a value ranging from 195 million EGP to 200 million EGP.
The bank participated with 100 million EGP in the securitization issuance of Global Corp, in addition to another operation valued at 95-100 million EGP in mortgage finance. The total value of Global Corp’s securitization process for financial services is about 985 million EGP. (Arab Finance)
The board of the Housing and Development Bank (HD Bank) has approved higher funding sources for a 3.79 billion EGP capital increase. The capital raise will be financed from general reserves with 3.28 billion EGP and retained earnings with 511.97 million EGP.
It is noteworthy to mention that in September, the Egyptian Financial Regulatory Authority (FRA) approved a disclosure form submitted by HD Bank to increase the issued and paid-up capital to 5.313 billion EGP from 1.518 billion EGP.