Egypt will issue “Samurai” bonds next month
Egypt will issue “Samurai” bonds next month. The Egyptian government intends “Samurai” bonds will be offered in Japanese yen before the end of next November, with a value of 500 million USD. Samurai bonds are Japanese yen-denominated bonds issued by foreign borrowers on the Tokyo Stock Exchange. In March 2022, for the first time in its history, Egypt issued international “Samurai” bonds worth 500 million USD, which were then equivalent to about 60 billion yen. The return on the “Panda” bonds issued by Egypt reached 3.5% annually for a period of 3 years. Maait described this issue as a “very low return in a financial market that is new to us, and in unfavorable conditions that include many challenges.” (Asharq Business)
- Egypt eyes issuing 700 million USD green bonds in 2024.
The Egyptian government is considering issuing green bonds worth 700 million USD in 2024. The under-study bonds are expected to be issued through a government body affiliated with the Ministry of Electricity, with the aim of launching a green project in favor of or in partnership with the private sector. The International Finance Corporation (IFC) will serve as the underwriter on the bonds offering, which is likely to be carried out next year. This comes within the framework of the Egypt’s plan to increase government investments into green projects by 50% by 2025. (Al Borsa News)
- Egypt is currently intensifying its purchases of wheat from abroad.
Three international wheat traders also attributed the reasons for Egypt’s recent expansion in purchasing wheat to the government’s fears of aggravation of political fluctuations in the region and the imposition of sanctions on countries from which it imports grains, in addition to the decline in global prices during the current period by 32% over the year, therefore; It is a good time to hedge. Egypt is one of the largest importers of wheat in the world, and its purchases are closely followed as a global reference, and it usually purchases from abroad up to 12 million tons annually for the government and private sectors. (Asharq Business)
- Talaat Mustafa: we are continuing the procedures to implement the acquisition of a significant share of historic hotels.
Last July, the group announced that its hotel arm, the Arab Hotel and Tourism Investments Company - ICON, had submitted an offer to acquire an influential stake in the ownership and management rights of a portfolio of a number of hotels in Cairo, Alexandria, Luxor and the Souks, owned by the Egyptian General Company for Tourism and Hotels - EGOTH. The acquisition, upon completion, will result in Icon's portfolio reaching a total of 15 hotels, and will also contribute to achieving future revenues in hard currency. (Hapi Journal)
- S&P Global downgrades Egypt’s credit ratings to B-.
S&P downgraded Egypt's long-term credit rating to B- from B and revised the outlook to stable from negative mainly on the back of the severe USD liquidity crunch. Similar to the rationale behind the recent Moody's downgrade, S&P mentioned that they are now less confident about Egypt's ability to finance the 29.2 billion USD of debt servicing due in 2024. The rating agency mentioned that the debt servicing in 2024 is equal to a fifth of the country’s external debt and around 85% of foreign reserves. (Hapi Journal)
- Furthermore, S&P mentioned that it could lower the rating further if the government fails to implement the macroeconomic reforms needed to reduce the country’s economic imbalances.
Moreover, if interest rates rise further, this would increase the risk of a distressed debt, which could push the rating agency to undertake another downgrade. This downgrade followed Moody's decision to cut Egypt's rating from B3 to Caa1 in early October while Fitch’s decision on Egypt’s rating should come on November 3rd. (Hapi Journal)
- Minority stakeholders will start selling their shares in Paint and Chemical Industries (Pachin) tomorrow in response to the latter’s bid to buy back its publicly-traded 24 million shares for 39.8 EGP each.
The deadline for responding to the offer is set for 2 November. This follows the new Emirati owners’ plan to go private with the company, which was greenlit by the board in September. National Paints Holding acquired more than 80% of the formerly state-owned company in a mandatory tender offer (MTO) in May. (Hapi Journal)
- The conflict in Gaza negatively affects supply chains in the entire Middle East region, not just Egypt.
The impact of the current crisis may extend to the whole world as a result of the rise in the prices of a barrel of oil for the two known types to exceed the barrier of 92 USD per barrel, expecting a further rise, especially with the absence of any signs of calm on the part of Israel. The reasons for the negative impact of the conflict in Gaza on supply chains are the rise in prices and the adoption of a precautionary policy towards the disruption of shipping traffic in the region. All of these risks could lead to more unrest or a retreat from the policy of globalization and a trend toward greater self-restraint. (Hapi Journal)
- Value to offer flexible financing solutions to EBI’s customers.
Valu has partnered with the Egyptian Banking Institute (EBI), the training arm of the Central Bank of Egypt (CBE), to offer flexible financing solutions to individuals seeking to benefit from EBI’s training programs. Under the deal, EBI's customers will pay for their training programs, certificates, and qualification programs online. “We are excited to partner with EBI to facilitate access to quality education for our customers and provide them with comprehensive solutions to meet their career growth needs,” Valu’s Group Head of Product Development Ahmed Seoudy commented. (Hapi Journal)
- 2 banking consortia compete for 10 billion EGP loan to HCWW.
Two banking consortia, one made up of state banks and the other of private ones, are competing to offer an 10 billion EGP loan to the Egyptian Holding Company for Water and Waste Water (HCWW). The first consortium comprises the National Bank of Egypt (NBE), Banque de Caire, and Banques Misr, while the other is made up of QNB Alahli and the National Bank of Kuwait–Egypt (NBK Egypt). The winning consortium will be announced within a month. The loan aims to settle the company’s outstanding liabilities owed to the Ministries of Electricity and Petroleum, in addition to revamping related sanitation projects. (Asharq Business)
- responsAbility Participations AG exits from Fawry in 903.9 million EGP deal.
responsAbility Participations AG has sold its entire 4.74% stake in Fawry for Banking Technology and Electronic Payment (FWRY) for 903.887 million EGP. As per another disclosure, responsAbility Participations Maturates has bought the stake, representing 161.408 million shares, from responsAbility Participations AG at an average purchase price of EGP 5.60 per share. The deal was executed by EFG Hermes International Securities Brokerage. (Arab Finance)
- Saudi Egyptian Investment posts 30.8% profit growth in 9 months.
Saudi Egyptian Investment and Finance (SEIG) has reported a 30.86% year-on-year increase in net profit after tax for the first nine months of 2023. Net profits rose to 20.681 million EGP during the January-September period of 2023 from 15.804 million EGP in the same period a year earlier. Meanwhile, operating revenues grew 31.16% YoY to 27.681 million EGP, up from 21.104 million EGP. (Hapi Journal)
- Egypt releases 56.7 billion USD worth of goods until mid-October.
The Egyptian government has released goods worth 56.7 billion USD at ports during the period from January to mid-October. Total released commodities during this period were valued at $15.1 billion, whereas released production requirements were worth 26.2 billion USD. It is worth mentioning that in September alone, total released goods valued at 5.9 billion USD, 1.8 billion USD of which represent the value of strategic goods. (Arab Finance)
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