Banque Misr to launch “Teeba” Fund with a targeted capital of 1 billion EGP

Newsletter

15 Aug 2021

For our top news of the day, Banque Misr to launch “Teeba” Fund with a targeted capital of 1 billion EGP with commitments from 3 local banks to invest in other funds (fund of funds). According to Banque Misr’s CEO, the fund is going to be launched within a month with AUM’s of 1 billion EGP in phase 1, to be increased to 2 billion EGP in phase 2. The fund is going to be managed by Avanz Capital with Phase 1 capital expected to be funded through the Banque Misr, National Bank of Egypt, Banque du Caire, and Suez Canal Bank.

Second, Ashraf Negm, National Investment Bank’s Vice President, denies recent news circulating regarding the liquidation of NIB and clarifies the bank is undergoing restructuring.
The restructuring of the bank had been announced by the government 3 years ago and comes as part of the broader economic reform program currently undergoing.
Third, Swivl considering dual listing on the EGX after finalizing listing on NASDAQ in a SPAC transaction.
This comes after Prime Minister Mostafa Madbouly met a host of Egyptian entrepreneurs among them Swivl’s founder, Mostafa Kandil. The two discussed the dual listing possibility which is going to allow investors to engage in arbitrage trading – buying the asset in one of the markets and selling it in the other. Swivl is currently in the process of listing on NASDAQ exchange through a merger with the Special Purpose Vehicle Company (SPAC) Queens Gambit for a valuation in the range of 1.5 billion USD.
Equally Important, Banque Misr intends to issue green bonds in the next period becoming the first government bank to issue these types of bonds.
The FRA is currently providing incentives for financial institutions issuing green bonds by waiving 50% of FRA issuing costs. CIB managed the first green bonds issuance in the Egyptian market worth 100 million USD last June.
Moving on to the M&As, Banque Misr currently working on merging its leasing arm BM Lease and CI Capital’s leasing division Corplease in addition to transferring a portion of Misr Capital’s activities to CI Capital.
Banque Misr, the second-largest Egyptian government bank, recently completed the acquisition of an additional 65.3% share of the capital of CI Capital Holding for Financial Investments, through a mandatory tender offer, bringing the bank’s total ownership in CI Capital to 90%.
Furthermore, Maged Al-Futtaim, Hassan Allam, and Mountain View each submit offers to co-develop “Heliopark”, a land plot over 1695 feddans owned by Heliopolis for Housing and Development.
Yesterday, the period set by Heliopolis Housing for submitting partnership offers expired, noting that 10 development companies had withdrawn their offers, while only the three aforementioned companies submitted their proposals.
By the same token, Sky Abu Dhabi Development, a subsidiary of the Emirati Diamond Group, is planning on investing 15 billion EGP on 3 projects over the next 2 years.
The company is currently working on a real estate project in the New Administrative Capital on a land plot of over 23 feddans. The project includes 1 thousand residential units and 15 thousand sqm2 for commercial and administrative purposes with sales already exceeding 1 billion EGP in less than 6 months. In addition to two new projects in New Cairo and North Coast to be announced by the 2021-year end.
With regards to companies’ coverage, Pharos and Tasaheel receive the nano-finance license, after the FRA recently approved the second nano finance product which allows of lending up to 3 thousand EGP with a repayment period not exceeding 90 days.
Tasaheel, a subsidiary of Ghabbour Auto, is a microfinance company with over 450 offices nationwide, which provides the geographical presence needed to roll out nano finance products.
Moving to the global economic outlook, Goldman Sachs lowers China’s oil demand expectations as cases of covid’s delta variant surge worldwide.
The bank lowered china’s expected oil over the next 2 months with fears over the global economic slowdown from the rapid transmission of the delta variant. However, the bank forecasted global oil demand to remain resilient in the next 2 months moderately falling to 97.4 barrels compared to 98.4 barrels daily in July.