Minister of Finance discussed with Oka Hirochi, the new Japanese ambassador to Egypt, the possibility of issuing Egyptian bonds in Japan for the first time

Newsletter

18 Jan 2022

For our top talks today, first, Minister of Finance Mohamed Maait discussed with Oka Hirochi, the new Japanese ambassador to Egypt, the possibility of issuing Egyptian bonds in Japan for the first time. Maait said that the step comes within the plans to issue various medium and long-term government bonds, which target new instruments such as sukuk, sustainable development bonds, and green bonds. This, in turn, contributes to expanding the investor base and attracting additional liquidity to the government stock market, in a way that helps reduce the cost of debt. (Arab Finance)

Second, Norway's Scatec plans to issue 340 million USD in green bonds, becoming the first private issuance of green bonds in Egypt.
The issuance is secured by the company’s six solar energy plants in Benban complex that has a production capacity of 390 megawatts. This comes amid Egypt’s boom in clean infrastructure projects during the last decade. (Alarabiya)
Egypt’s Universal Health Insurance Authority (UHIA) will add over 100 fresh medical services for its beneficiaries within six months after agreeing with the providers from both local and private sectors on the prices of such services, Minister of Finance Mohamed Maait announced.
Maait added that the system’s price list currently covers 3,000 medical services extended to the subscribers. In addition, the World Bank, WHO, French Development Agency (AFD), and Japan International Cooperation Agency (JICA) are set to provide Egypt with a facility worth 1 billion USD to finance the country’s universal health insurance system. (Arab Finance)
Suez Canal revenues are expected to reach 7 billion USD in 2022, an increase of 11.1% when compared to 2021, Suez Canal Authority (SCA). In 2021, Suez Canal revenues jumped 13% Year on Year (YoY) to 6.3 billion USD, on the back of an all-time high net tonnage transiting the canal amid a 10% increase in the number of passing ships.
Rabie said that most ships are set to pay a 6% increase in canal transit fees from February. LNG carriers and cruise ships are exempt from the fee hike, which was announced in November as the authority starts to wind down a range of incentives and reductions introduced in 2020 to counter the global trade slowdown due to covid-19. The authority is looking to complete work on widening and deepening the canal by July 2023. (Bloomberg Asharq)
Egypt has received a total of 3 million doses of the Pfizer vaccine from the US under the World Health Organization’s COVAX and GAVI program, a recent statement by the Ministry of Health revealed. Almost 40% of citizens aged above 18 years old are fully vaccinated, according to the Minister of Health.
Some 23.6 million people received 2 doses of the COVID-19 vaccine, while another 12.8 million have received their first dose. The government began rolling out its booster program in December, contacting senior citizens, people with chronic medical conditions, medical staff, and people who were vaccinated more than six months ago. The Ministry is aiming to administer 23 million booster shots by the first half of 2022. (Ahram Online)
Moving to our investments talks, Hyundai Rotem is looking for expanding its footprint into the Suez Canal Economic Zone (SCZone). The Korean manufacturer is in talks with an Egyptian company to establish a production plant in the SCZone.
Hyundai already has projects lined up in the SCZone having agreed to work with the National Egyptian Railway Industries Company to produce railcars. Hyundai Rotem could also develop a Luxor-Aswan railway line, having already agreed to upgrade the 118 kilometers Naga Hammadi-Luxor line in 2021. (Al-Mal)
Moreover, state-owned Engineering Automotive Manufacturing Company (EAMCO) is set to sign a cooperation agreement with South Korean auto firm, Myoung Shin, to locally produce electric microbuses.
The deal is expected to be signed over the running week during South Korean President Moon Jae-in’s visit to Egypt. Myoung Shin will work with local firm BrightSkies on the EV microbuses. The Korean firm will produce the bus’ chassis, while BrightSkies will cooperate with EAMCO to supply the control systems, power units and engines under an agreement signed in November. Previously, Public Enterprise Minister Hisham Tawfik said that the 80% locally sourced microbuses were set to be prototyped within a year. (Arab Finance)
Egypt to pump up to 30 billion EGP investments to develop state-owned oil companies in the fiscal year (FY) 2022/2023 budget, Oil Minister Tarek El Molla revealed in a statement. El Molla added that this figure is the highest ever to be allocated.
He further noted that bringing the industry in line with environmental standards is of the utmost importance. At the start of 2022, seven international energy companies were awarded eight of the 24 oil and gas exploration blocks included in the government’s latest bid round held. Meanwhile, Eni committed to invest a minimum $1 billion on exploration and extraction in the Gulf of Suez and Nile Delta regions, while the Oil Ministry also inked a new $ 3.5 billion, 20-year production agreement with Apache-Sinopec JV. (Al-Mal)
Turing to our EGX and companies talks, Aspire Capital Holding for Financial Investments (ASPI) announced that its subsidiary Al Khair Microfinance has completed the purchase of Business Enterprise Support Tools Foundation’s (BEST) loan portfolio and tangible and intangible assets.
The purchase transaction has been implemented at a value of 19 million EGP. This investment marks Aspire Capital’s first step in expanding in the non-banking financial services sector after the completion of its restructuring plan in October 2021. Al Khair Microfinance aims at providing a number of non-banking financial services in the Egyptian market as well as considering further investment opportunities in the sector. Aspire Capital Holding, formerly known as Pioneers Holding Company for Financial Investment, is an Egypt-based company that operates in the financial services sector. (EGX)
Edita Food Industries (EFID) has launched its latest wafer product, Freska Choco Sticks, under its Freska brand. Freska Choco Sticks are available in markets for sale at a price of 3 EGP per pack.
The pack contains two rolled wafers; each coated with chocolate and filled with chocolate hazelnut. This launch comes as part of Edita’s plan to extend its footprint in the fast-growing wafers segment, while adding to the company’s revenue diversification strategy and acquiring a larger market share. In 2021, Edita boosted its market share in the wafer segment to around 15%, becoming the market leader in the coated wafer subsegment. (Arab Finance)
Tenth of Ramadan for Pharmaceuticals Industries and Diagnostic Reagents (Rameda) (RMDA) has begun the commercial production of Molupiravir Rameda Molupiravir Rameda is the generic form of oral antiviral medicine developed by Merck to treat Covid-19 in adults.
The new medicine has received the necessary authorization form from the Egyptian Drug Authority (EDA). This came after Merck’s version has received the emergency use authorization from the US Food and Drug Administration (USFDA) and the standard authorization from the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA). Under Rameda’s production plan, it is collaborating with both the EDA and the Egyptian Ministry of Health, seeking to fully meet the market demand in a timely manner. (Arab Finance)
Egyptian Chemical Industries (KIMA) (EGCH) is currently in talks with a number of banks to obtain a loan worth 250 million USD. The company will use the loan to finance the establishment of a new plant as an alternative to KIMA 1 in Aswan, Radwan highlighted, stressing that the plant will be eco-friendly.
In the same vein, KIMA is expecting to achieve operation revenues of 2 billion EGP in 2022. The company also targets the completion of the adjusted agreement with some banks regarding the restricting of an old loan in the first quarter (Q1) of 2022. Under the agreement, a loan worth 292 million USD and another of 1.9 billion EGP shall be restructured, along with cutting interest rate. (Al-Mal)
And finally, the Egyptian Exchange (EGX) announced that some transactions have been implemented on 1.412 million issued shares of Egyptian Gulf Bank (EG Bank) (EGBE) at a total value of 9.208 million EGP.
This transaction came within the framework of the employee stock ownership system. EG Bank is engaged in the provision of corporate, retail, and investment banking services through a network of 16 branches located across Egypt. (Arab Finance)