Egypt is expected to witness sukuk issuance worth 5 billion EGP before the end of 2021
For our top macro talks today, first, Egypt is expected to witness sukuk issuance worth 5 billion EGP before the end of 2021, bringing the total expected outstanding of Islamic bonds to more than 7.5 billion EGP in 2021. Contact Financial Holding launched the only sukuk issuance year to date (YTD) in Egypt, with a value of 2.5 billion EGP. Noteworthy, FRA still has sukuk offerings on the table. Additionally, Hassan Allam Holding, Palm Hills Developments, Wadi Degla, Amer Group, and an agricultural reclamation company considered offering sukuk during the coming period, the most likely of which were by Palm Hills and Wadi Degla. Also, Amer Group’s sukuk offering is expected to be postponed to the beginning of 2022. (Source: Daily News)
- Second, the Suez Canal Authority (SCA) was ranked second on Forbes’ 10 Biggest Logistics Companies in MENA, trailing behind Dubai’s DP World that came in the first place.
About 12% of the world’s trade passes through the 120-mile man-made waterway each year. It is one of the most important sources of income for Egypt. The SCA recorded revenues of 3 billion USD in the first six months of 2021, an increase of 8.6% compared with 2.7 billion USD in the same period of 2020. Many MENA countries are developing their ports infrastructure as they compete for a bigger market share of global trade. While the U.A.E. is the market leader, Oman, Saudi Arabia, and Egypt have also announced large investments in this sector. (Source: Forbes)
- Additionally, as the real impact of climate change dawns on Egypt and the Middle East, three Egyptian companies were chosen by Forbes among top 10 sustainability.
The three companies are Cairo Solar, the Egyptian Company for Solid Waste (ECARU), and KarmSolar. Governments across MENA are looking to promote green technologies and good practice. The sustainability scene in the region is very diverse. Large local and multinational companies with their core business in traditional industries are executing billion-dollar sustainability projects or spending millions on making their operations better for the environment. (Source: Forbes)
- Moving to our companies talks, first, Fawry for Banking Technology and Electronic Payment has completed an investment in alsoug.com,
the largest online classifieds platform and marketplace in Sudan. This deal is Fawry's first venture capital investment outside the Egyptian market. The investment will be used to develop alsoug’s new fintech platform, Cashi, as Fawry has acquired a strategic minority stake in alsoug.com/Cashi Holding company. The investment comes as part of Sudan’s first announced venture capital funding round. Fawry played a leading role in ensuring the success of the 5 million USD funding round that witnessed participation from other strategic Western VC players. It is worth mentioning that during the first half (H1) of 2021, Fawry achieved profits of 137.15 million EGP, compared to 85.9 million EGP in H1-20, including minority shareholders' rights. (Source: EGX)
- Second, Orascom Development Egypt (ODE) achieved new real estate sales of 2.2 billion EGP in the third quarter (Q3) of 2021, a 50.3% year-on-year (YoY) increase from 1.5 billion EGP in Q3-2020.
This brings total real estate sales to 6.2 billion EGP during the first nine months of 2021, marking a 43.4% YoY growth. We believe the growth in sales was attributed to the increase in the average selling prices as well as the higher number of units sold. In the first half (H1) of 2021, ODE recorded consolidated net profits of 744.58 million EGP, compared to 168.35 million EGP in H1-2020, including minority shareholders' rights. (Source: Company's preliminary unaudited key performance indicators (KPIs))
- Also, Orascom Construction PLC, listed on the EGX and Nasdaq Dubai, added new awards worth 960 million USD to its backlog in the third quarter (Q3) of 2021,
marking a 42% year-on-year (YoY) increase. This brings total new awards in the first nine months of 2021 to 2.8 billion USD. Projects in Egypt accounted for 65% of new awards during the July-September period, including a contract to design, install, commission, and maintain the first high-speed rail system in the country. In addition, new awards in the US made up 35% of total awards during Q3-2021, primarily driven by large projects in the student housing sector. The estimated consolidated backlog recorded 6.1 billion USD as of 30 September. (Source: EGX)
- Furthermore, Algebra Ventures venture capital, revealed that a number of international institutions such as the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) will participate in the first closing of the company's second fund,
with a target size of about 90 million USD. The first closure of the company's second fund aims to raise about 60 million USD before the end of this year, pointing out that there are negotiations with local institutions to participate in the fund. It is noteworthy that “Algebra Ventures” announced last April the launch of its second fund, worth 90 million USD, which will focus primarily on investing in Egyptian startups that change industries through technology. (Source: Al-Mal)
- In the same fashion, Dubai-based global port operator DP World has signed an agreement with the UK-based CDC Group to inject 1.7 billion USD investments to develop ports and logistics in Africa over the next two years.
Under the deal, DP World will contribute stakes in its assets that include ports in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). CDC will initially contribute 320 million USD and has committed an additional 400 million USD over the next few years. The partnership is expected to boost trade and deliver employment opportunities in the three countries. (Source: DP World)
- Moreover, the European Bank for Reconstruction and Development’s (EBRD) financing in Egypt amounted to 7.7 billion EUR for both the government and the private sector.
The bank has provided financing for the implementation of 143 projects, more than 75% of which are for the private sector. In 2021, the bank’s financing was directed to the private sector with a total amount of 288.3 million EUR, in the sectors of renewable energy, small and medium enterprises, agriculture and others. Egypt topped the EBRD’s list as the largest country of operations in the southern and eastern Mediterranean region during 2020. (Source: Arab Finance)
- Turning to our COVID-19 watch, AstraZeneca” announces positive results for a new drug that reduces the risks of corona.
Reduced risk of severe coronavirus infection or death by 50% compared to those who did not get the same treatment. Thanks to the positive trial results, AZD7442 is now the first long-acting antibody treatment to be shown to benefit both in the prevention and treatment of COVID-19. These important findings add to the growing body of evidence confirming the potential of long-acting antibodies to make a real difference in the fight against the virus. (Source: AL-Mal)
- And finally, for our EGX talks, Renaissance Capital announced it has raised the fair value (FV) for Integrated Diagnostics Holdings’ (IDH) (IDHC) stock to 1.90 USD from 1.70 USD in London Stock Exchange (LSE).
This FV equals an increase to 29.90 EGP per share from 27.1 EGP per share in the EGX. Moreover, Renaissance Capital has raised its final estimates for IDH’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by 47% to reach 2.4 billion EGP. The company also increased its estimates for IDH’s net profit by 51% to 1.4 billion EGP. (Source: EGX)
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