Egypt is ready for issuing its first sovereign sukuk, however, the current conditions of global markets are unfavorable for the offering launch

Newsletter

13 Jun 2022

First, Egypt is ready for issuing its first sovereign sukuk, however, the current conditions of global markets are unfavorable for the offering launch, which was scheduled to take place before the end of 2022, according to the Minister of Finance Mohamed Maait. The sukuk offering will remain on-hold until the time is ripe, Maait added on the sidelines of his meeting with a group of South Korean investors in Cairo. In February, Egypt hired six banks including Citi Group and HSBC to manage its first sovereign sukuk offering. On June 5th, Maait stated that the Egyptian government considers the issuance of the first sovereign sukuk over the coming period. It is worth noting that Minister of Finance Mohamed Maait previously announced that Egypt would issue the first sovereign sukuk in the second half (H2) of fiscal year (FY) 2021/2022. In April, the Egyptian Cabinet approved the executive regulations of the Sovereign Sukuk Law No. 138 of 2021. (Asharq Business)

Second, Minister of Petroleum and Mineral Resources Tarek El-Molla has announced the initiation of procedures required for the establishment of the petroleum zone in Greater Cairo’s El-Tibbin district on 1,000 feddans.
The new zone will host a group of projects including new expansions of the infrastructure of the National Network for Transmission of Oil Products which will transmit crude oil and oil products from and to Upper Egypt through El-Tibbin to Petroleum Pipelines Company. The project also includes Petroleum Pipelines’ new oil transmission plant which will be built at an estimated cost of 1.8 billion EGP. The new plant will store crude oil and transmit supplies from Ain Sokhna through El-Tibbin to the Asyut oil refinery. The plant will also transmit mazut surplus from Asyut to Ain Sokhna through El-Tibbin. (Arab Finance)
The Egyptian Ministry of Finance has signed a cooperation protocol with the Ministry of Public Business Sector, Cotton and Textile Industries Holding Company, Holding Company for Construction and Development, Holding Company for Tourism, Hotels, and Cinema, and the Holding Company for Maritime and Land Transport.
The protocol was signed for partial settlement of an accrued debt owed to the Egyptian Tax Authority (ETA) by the aforementioned holding companies and their subsidiaries. The agreement involves waiving rights to some unused lands and property assets owned by these holding companies and their subsidiaries to settle a portion of ETA’s outstanding debt until the end of December 2020. With the approval of the aforementioned signatories, the same settlement mechanism could be applied to outstanding debt owed by these companies and their subsidiaries to ETA, Real Estate Taxation Authority, and Public Taxes Mission for Corporations until the end of December 2021. (Al Mal)
The Tahya Masr Multipurpose Terminal (TMT) has received the first batch of the six electric gantry cranes, with the second batch of another six cranes to arrive by the end of June.
The new cranes, which are the first-of-it-kind in Egypt, are run by electric cables and are used for massive loads in containers yard. The new batch has been unloaded for assembly at the TMT under the supervision of a team of experts from the German-Swiss equipment manufacturer Liebherr. Installation of the cranes is expected to take up to six weeks. The trial operation of general goods and cars handling in the new terminal is scheduled in mid-July. (Arab Finance)
And for our EGX and companies talks, Saudi food conglomerate Savola has signed an agreement to acquire 100% of the Egyptian Belgian Company — best known for its Ole-branded baked goods — for 622.4 million EGP.
Al Ahly Pharos acted as exclusive buy-side advisor to Savola on the transaction, while Zilla Capital was sell-side advisor. Savola is behind popular local cooking oil, ghee, pasta, and sugar brands including Rawabi ghee, Afia oils, and El Maleka and Italiano pastas. Its products are sold across the region, including in the Gulf, Sudan, and Turkey. The company has been looking at acquiring more food companies in Egypt since last year, saying at the time it would look at companies who produce items not covered by its existing portfolio. Savola plans to pour 740 million EGP into the factory it acquired from Ole, which is set to reopen within six months, Savola Chief Strategy Officer Mohamed Badran was quoted as saying by Al Borsa. Savola hopes to achieve sales from the factory of around 2 billion EGP annually, worth some 16% of the local baked goods’ market. (Al Mal)
Icon begins the procedures for establishing two companies, with a capital of 187 million EGP.
The Architectural Engineering Industries Company for Reconstruction and Development - Icon, intends to complete the restructuring of the company with a vertical division and the establishment of two divided entities, by the end of the third quarter of this year 2022. This comes in addition to the establishment of the Icon Caravans Equipment Company, which is represented in the manufacture and installation of caravans and iron structures and sectors, with a licensed capital of about 250 million EGP, with an issued capital of about 67 million. The authorized capital of the Architectural Engineering Industries Company for Construction and Development “ICON” is 1.5 billion EGP, and its issued capital is currently before the division according to the latest amendment to its statutes, 485 million EGP, with a nominal value of 4 EGP per share, all of which are cash and fully paid shares. While the dividing company will contribute to the capital of the divided entities. (Amwal Al Ghad)
e-finance for Digital and Financial Investments (EFIH) has signed a memorandum of understanding (MoU) with the Libyan Ministry of Finance for the development and digitization of the government financial infrastructure in Libya.
Under the signed MoU, e-finance will provide digital transformation and electronic payment services to the Libyan government as well as manage its financial and accounting information systems. The signing comes in line with benefiting from the financial grants and technical assistance offered by regional institutions such as the African Development Bank and the Islamic Development Bank to fulfill the ministry’s goals to digitize the government financial infrastructure in Libya. (EGX)
Egypt Aluminum Company (Egyptalum) (EGAL) is considering developing its current plant to boost the production efficiency of equipment and to keep the production capacity at 320,000 tons per annum through the US-based Bechtel Corporation.
The financial cost for the development of the plant has not been determined yet. Regarding the seventh production line, the feasibility study has turned out economically infeasible unless the cost of the kilowatt-hour is 58 piasters. Egyptalum is an Egypt-based company specialized in extruding aluminum profiles for architectural and industrial applications. The company undertakes the activities of aluminum billet casting, dies, extrusion, alloys, painting, and anodizing. (EGX)
The Egyptian Modern Education Systems (MOED) is considering the acquisition of a number of international and language schools over the coming period.
The company will also resume the construction works of the International Education Building, which was suspended for two years due to the Covid-19 pandemic, as soon as possible at an investment cost of 80 million EGP. The building is set to begin operations as of the academic year of 2023 with a capacity of 1,000 students. The company previously announced that it considers building a new university in one of the new cities. Established in 2001, Egyptian Modern Education Systems operates within the consumer services sector focusing on education services. (EGX)
First Dhabi Bank (FAB) Egypt has completed the legal merger with Bank Audi Egypt under the new identity “FABMISR”.
Accordingly, all the assets of Bank Audi Egypt will be operated under the FABMISR brand. Following the merger, the new entity will occupy a place among the largest foreign banks in Egypt with assets amounting to more than 185 billion EGP as of March 31st, operating 69 branches, and 207 ATMs. The merger has been finalized after all required regulatory approvals were obtained, including the final approval of the Central Bank of Egypt (CBE) and the General Authority for Investment and Free Zones (GAFI). The system integration under the new identity is expected to be completed in the fourth quarter (Q4) of 2022. (Arab Finance)