Egypt is in final talks with India regarding receiving wheat supplies amid the ongoing Russian invasion of Ukraine

Newsletter

23 Mar 2022

For our top talks today, first, Egypt is in final talks with India regarding receiving wheat supplies amid the ongoing Russian invasion of Ukraine. India, the world’s second-largest wheat producer, is also in talks over selling wheat with other countries, including China, Turkey, Bosnia, Sudan, Nigeria, and Iran. It is worth noting that a shipment of 30,000 tons of wheat from France is on its way to Egypt as part of a “rare French sale” to the Egyptian private sector. Egyptian supply minister Ali El-Moselhi previously announced that the government allocated 36 billion EGP for 6 million tons of local wheat supplies this season. (Bloomberg)

Second, Egyptian President Abdel Fattah El-Sisi has approved a 13% increase in pensions, to be effective as of April 1st.
The government also decided to upgrade the tax exemption limit to 15,000 EGP from EGP 9,000 to include individuals receiving an annual wage of 30,000 EGP, instead of the current limit of 24,000 EGP. Citizens receiving monthly wages of up to 2,500 EGP will be fully exempted from paying taxes. Additionally, the president directed the government to allocate up to 130 billion EGP as a reserve to face any potential challenge in case the current crisis persisted. (Al Mal)
And for our EGX and companies talks, Misr Italia Properties is planning to issue securitized bonds worth 800 million EGP in the fourth quarter (Q4) of 2022.
The issuance comes as part of a three-year term securitization program at a total value of 2.5 billion EGP. In February, the investment banking division of EFG Hermes (HRHO) closed advisory on the Misr Italia’s first issuance worth 794 million EGP under the securitization program. In another context, El-Assal said that the company is currently in talks with a number of state-run and private banks over obtaining a loan of around 1.5 billion EGP to finance its projects. It is worth noting that Misr Italia recently signed a memorandum of understanding (MoU) with Honeywell International Inc. for the development of an integrated smart e-system to facilitate the daily lifestyles of its customers as per the standards of sustainable development. (EGX)
Palm Hills Development Company (PHDC) and Taleem Management Services signed an agreement with Julius Berger International (JBI) to manage and supervise Badya International University project.
The project is situated on 160,000 square meters (sqm) in Palm Hills Badya City in 6th of October City and slated for completion in three years. Palm Hills and Taleem intend to inject 2.1 billion EGP worth of investments into construction works of the project which is planned to be completed in three phases. The new university’s campus will comprise eight scientific and theoretical faculties including medicine, science, technology, engineering, fine arts, and business administration. Furthermore, Badya International University is set to accommodate more than 9,000 students. (Amwal Al Ghad)
ADQ, a wealth fund based in Abu Dhabi, has entered an agreement with the Egyptian government to invest up to 2 billion USD in the North African country through purchasing state-owned stakes in some companies.
Under the agreement, ADQ will acquire about 18% of the Commercial International Bank (COMI) (CIB), Egypt’s largest listed bank on the Egyptian Exchange (EGX). The deal also involves ADQ buying stakes in four other EGX-listed companies, including Fawry for Banking Technology and Electronic Payment (FWRY). In 2021, ADQ had acquired an Egyptian pharmaceuticals company from Bausch Health Co. (Bloomberg)
Orascom Construction PLC (ORAS) has reported a 5.1% year-on-year (YoY) revenue increase in 2021, recording 3.543 billion USD.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) grew 3.3% YoY to 204.4 million USD in 2021. Net income attributable to shareholders jumped 43.2% YoY to $37.1 million during the fourth quarter (Q4) of 2021, and 24.8% YoY to 113.4 million USD for the full year. As for liquidity, Orascom’s net cash position went up to 441.6 million USD in the year ended December 31st 2021, while positive cash flow grew to 201.2 million USD. In 2021, consolidated backlog rose 12% YoY to 6.1 billion USD, while pro forma backlog including a 50% share in BESIX increased by 10.3% YoY to 8.9 billion USD. (EGX)
Wazaki Company has decreased its stake in Aspire Capital Holding for Financial Investments (ASPI) to 2.87% from 6.67% in consideration of 12.4 million EGP.
The transaction was executed on 40 million shares at an average value of 0.31 EGP per share. 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)
And finally, for our investments talks, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone has signed a cooperation agreement with the China Construction Science and Industry Corporation to establish a factory for manufacturing steel structures in Ain Sokhna.
The Chinese company has already received the location of the factory. Spanning, 27,000 square meters (sqm), the factory will have a production capacity of 14,000 tons of steel structures as well as 300,000 tons of ceiling panels. The production of this factory is set to meet the demand of the local market, along with markets in Africa, the Middle East, and the Mediterranean area. The value of the project’s investments and its timeframe have not been determined yet. (Al Borsa News))
Maridive and Oil Services’ (MOIL) board of directors has approved opening a new branch of the company in Saudi Arabia.
The opening of the new branch is pending the approval of General Authority of Investment and Free Zones (GAFI). Maridive’s board also approved changes to Articles 5 and 6 of the Articles of Association. Accordingly, the company’s authorized capital was decreased to 940.511 million USD from 1 billion USD. Maridive Group is an Egypt-based company engaged in the provision of offshore marine and oil support services in the Middle East and North Africa Region. (EGX)