AL Masry Club appoints Zilla Capital as the exclusive financial advisor for the development of its new Stadium complex project
AL Masry Club appoints Zilla Capital as the exclusive financial advisor for the development of its new Stadium complex project. The project value is estimated by the club to exceed 4 billion EGP. The project aims to develop an integrated sports area in Port Said, which consists of an international stadium with international standards in cooperation with the largest engineering expertise houses in the sports field, with a capacity of more than 20,000 spectators on an area of 40,000 square meters and a total built up area of 160,000 square meters, and a hotel annex consisting of 400 rooms in addition to commercial spaces and 800 luxury hotel apartments within 30,000 square meters. (Zilla Capital)
- Egypt seeks up to 6 billion USD by June from sale of state firms.
Egypt wants to attract more foreign direct investment, while also negotiating a new loan with the International Monetary Fund, after taking a hit from soaring food and fuel import bills as a result of the war in Ukraine. It saw 22 billion USD in outflows from the local debt market since March. Egypt is promising a wider overhaul that will see the state play a smaller role in the economy, in line with IMF policy advice. Abu Dhabi wealth fund ADQ and a unit of Saudi Arabia’s Public Investment Fund have already pumped roughly 3 billion USD into Egypt, snapping up government-held stakes in prominent companies under deals that were facilitated by the Egyptian sovereign fund. (Bloomberg)
- Additional sovereign wealth funds in the Gulf and elsewhere will be approached, and there’s a plan for a roadshow in Europe and Asia at the end of October to showcase the investment opportunities in Egypt.
Sovereign wealth funds are usually long-term investors, they add value in terms of expertise, finance and technology. Egypt has set up a “pre-IPO” fund, which aims to restructure some state-owned assets and prepare them for stake sales. The target is to transfer assets worth as much as 3 billion USD to that fund within three to six weeks, among them a power plant co-built by Siemens AG. (Bloomberg)
- Finance Minister, Dr. Mohamed Maait: Egypt is in talks with Japan for a 500 million USD loan, part of which will go towards environmentally friendly projects.
Maait also reportedly said the country is in talks with China on securing loans at a reasonable cost as part of a “package of alternatives.” The government is looking to China and Japan for new avenues to raise foreign currency following a major hit to portfolio inflows amid the global economic turbulence. It is worth mentioning that China has emerged as a competitor for the IMF in recent years by shelling out discreet emergency loans to “crisis-hit” countries with no strings attached. Egypt has reportedly been able to seize the chance and take some amounts. (Bloomberg)
- The government is sourcing out several less-expensive alternatives for FX.
Maait also mentioned plans to issue sukuk, CNY-denominated panda bonds worth more than 500 million USD, and a “green” JPY-denominated bond, following the ministry’s maiden samurai bond issuance in late March. “With the conditions of capital markets, we have to rely on nontraditional, cheaper sources of foreign currencies,” Maait said, adding that debt diversification has helped us manage a “huge outflow” of 22 billion USD in hot money. Another green bond in the works? The government is also looking at the possibility of issuing a green Eurobond. The Finance Ministry in January signaled that it is looking to take to the green bond market for a second time with another 750 million USD issuance, matching the 2020 issuance that saw Egypt debut sovereign green bonds in the MENA region. (Al Mal)
- Egypt's exports of natural and liquefied gas amounted to 8 billion USD last fiscal year.
During the first 4 months of this year, Reuters data showed that Egypt's exports of natural and liquefied gas increased by 98% compared to the same period last year, reaching about 3.9 billion USD. Egypt is working on several joint projects with Cyprus, Greece and Israel in order to increase Egyptian gas exports to Europe. (Hapi Journal)
- Egypt’s GPC invests over 3 billion EGP in FY 2021/2022.
During the year, the company achieved its highest average production since its establishment, which amounted to around 68,300 barrels of oil equivalent (BOE) per day. GPC drilled five new exploration wells at its concessions with a primary production ratio of around 4,000 BOE. The company also completed the drilling of 35 development wells. It added around 30 million barrels to its confirmed reserves. Moreover, GPC started the operations of a gas pipeline in the North West of the Eastern Desert, adding around 15 million cubic feet (MCF) of natural gas. (Arab Finance)
- The CIT Ministry has been working over the past several years to localize the country’s electronics manufacturing industry.
The initiative, which is designed to cut down on Egypt’s imports of electronic products and increase our exports, initially earmarked mobile phones, tablets, GPS tracking devices, LED lighting, smart meters, LED TVs and displays, and solar energy systems as the most promising products to manufacture domestically and export. Egypt is a prime location for electronics manufacturing, thanks to its cheap but large labor market, our strong consumer market, and favorable geographical location that makes us ideally placed to become an export hub. (Economy Plus)
- FRA nods to capital hike for EBank.
The Financial Regulatory Authority (FRA) agreed to publish the disclosure on Export Development Bank of Egypt’s (EBank) (EXPA) decision to raise the issued and paid-up capital by 1.327 billion EGP. Accordingly, the bank’s issued and paid-up capital shall increase to 6.6 billion EGP from 5.27 billion EGP. The capital increase will be implemented in two stages; the first is through the issuance of 32.736 million bonus shares at a value of 327.36 million EGP, and the second by the cash subscription of 1 billion EGP from senior shareholders. The 1 billion EGP increase will be distributed over 100 million shares at a nominal value of 10 EGP per share, in addition to issuance expenses of 0.10 EGP per share. (Mubasher)
- Shareholder sells 3.18% stake in Domty.
NAS5 Russell Investment Old Mutual African Frontiers Fund has sold a 3.18% stake in Arabian Food Industries Company (Domty) (DOMT) for 49.50 million EGP. Hence, the fund cut narrowed its stake in Domty to 3.51% from 6.69% after selling 9 million shares at an average price of 5.5 EGP per share. (EGX)
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