EFG Hermes closes 2nd securitization issuance for Misr Italia at 986 million EGP

Newsletter

03 Jan 2023

EFG Hermes closes 2nd securitization issuance for Misr Italia at 986 million EGP. The issuance is a part of Misr Italia’s 2.5 billion EGP securitization program. The securitized bond is backed by a receivable’s portfolio originated by two of Misr Italia’s subsidiaries. The bond is comprised three tranches; EGP 197.20 million Tranche A with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS), 428.91 million EGP Tranche B with a tenor of 36 months and a credit rating of AA from MERIS, and 359.89 million EGP Tranche C with a tenor of 61 months and a credit rating of A from MERIS. (Al Mal)

GB Auto’s board approves sale of 45% indirect stake in GB Lease.
The board of directors of GB Auto (AUTO) decided to begin the necessary procedures of partially selling an indirect stake of 45% in GB Lease and Factoring for 855 million EGP. Accordingly, GB Auto will hold a 55% indirect stake in GB Lease and Factoring after the completion of the transaction. The fair value (FV) study on the shares of GB Lease B.V Netherlands, the owner of GB Lease and Factoring with a 75% stake. (Al Mal)
UAE’s ADIB buys additional stake of 2.4% in Egyptian unit.
UAE-based Abu Dhabi Islamic Bank has purchased an additional stake of 2.4% in Abu Dhabi Islamic Bank Egypt (ADIB) for 155.328 million EGP, equivalent to an average price of 16.18 EGP per share. Accordingly, the Emirati bank’s ownership in ADIB Egypt increased to 52.607% from 50.207%. ADIB Egypt is an EGX-listed bank that is engaged in providing retail, corporate, and investment banking services through a network of branches across Egypt. (Arab finance)
TMG Holding records new unprecedented net sales of 33.2 billion EGP in 2022.
Talaat Moustafa Group Holding (TMG Holding) (TMGH) has recorded robust net sales of 33.2 billion EGP in 2022, surpassing its annual sales guidance of 24-26 billion EGP by 28%. The unprecedented sales were driven by the devaluation of the Egyptian pound throughout 2022. The group’s solid cash flows in 2022 will enable it to settle about 2.85 billion EGP in outstanding loans during the year.
Foodico targets 80.9 million EGP net sales in 2023.
The board of directors of Ismailia National Food Industries (Foodico) (INFI) has endorsed the planning budget of 2023, with estimated net sales of 80.90 million EGP. As per the 2023 planning budget, the company is expected to record net profit before income tax of 16.108 million EGP. Foodico is an Egypt-based public shareholding company engaged in the food industry. The company exports its products to UAE, Europe, the US, Canada, and Australia. (Al Mal)
EGX outperforms Middle Eastern markets in 2022.
The Egyptian Exchange (EGX) topped the Middle East’s stock markets in 2022, with the main index, EGX30, ending the year 22% higher. The EGX reversed the loss recorded in the first quarter of the year, boosted by the finalization of the International Monetary Fund’s deal and the Central Bank of Egypt’s flexible exchange rate policy. The EGX’s indices closed higher in the last session of the year, with market capitalization reaching 961.22 billion EGP. (Reuters)
Egypt may hedge against higher oil prices.
The Egyptian government approved in December measures taken by the Ministry of Finance and the Ministry of Petroleum and Mineral Resources to hedge against inflation in global oil prices. One of the sources noted that the two ministries were waiting for the right time to enter into contracts and execute hedging transactions. It is worth noting that Egypt’s subsidy bill for petroleum products soared to 31 billion USD during the first quarter of the fiscal year 2022/2023 from 6.9 billion USD a year earlier. Egypt consumes around 12 million tons of diesel fuel and around 6.7 million tons of gasoline annually. (Asharq Business)
Egypt seeks operating LNG plants at full capacity in 2023.
Egypt is planning to fully operate its natural gas liquefaction plants at full capacity throughout 2023, according to the Minister of Petroleum and Mineral Resources, Tarek El-Molla. Egypt has two liquefaction plants, Damietta and Idku, with a total production capacity of 2.1 billion cubic feet per day. It is worth noting that Egypt’s natural gas export revenue surged by 171% year-on-year (YoY) to around 8.4 billion USD in 2022 from around 3.5 billion USD in 2021. Egypt achieved 53 new oil and gas discoveries in 2022. (Asharq Business)
Egypt to cut spending on government entities.
The Egyptian Cabinet approved the Prime Minister’s decision to reduce spending in the fiscal year (FY) 2022/2023 on entities included in the state’s general budget and general economic authorities. The decision provided for a group of general rules and regulations for spending reduction to achieve government goals and address the effects of global crises. On another note, the Cabinet approved the measures regulating the incentives for the transfer of state employees to the New Administrative Capital (NAC). The measures included allocating residential units for employees in Badr City and NAC’s R3 district. (Hapi Journal)
Egypt receives 2 new high-speed Talgo trains.
Minister of Transport, Kamil El-Wazeir, announced that Egypt received the third and fourth high-speed Talgo trains. The newly-arrived trains are a part of seven trains contracted with Spanish train manufacturer Talgo. The 157 million EUR contract includes maintenance and supply of spare parts. A Talgo train typically comprises 15 carriages and can reach a speed of up to 160 kilometers per hour. The trains are equipped with air conditioning, fire alarm systems, and WIFI internet. (Al Mal)
Egypt prepares conference to showcase investment opportunities.
The Egyptian government is preparing a conference in 2023 to promote investment opportunities in Egypt. Prime Minister Mostafa Madbouly called for the invitation of the biggest international institutions, major investment banks, representatives of international companies, and tycoons. He urged the government to initiate the preparation of the conference’s agenda and start contacting targeted investors. (Arab Finance)