Egypt’s trade deficit went down 22.5% in September 2021, registering 2.39 billion USD
For our top talks today, Egypt’s trade deficit went down 22.5% in September 2021, registering 2.39 billion USD, compared to 3.08 billion USD in September 2020. The authority attributed the fall to the increase of the exports by 36.6%. Egypt’s exports recorded 3.45 billion USD by the end of September 2021, compared to 2.53 billion USD in the same month of 2020. The increase in exports was attributed to the rise in the exports of various commodities, such as: fertilizers by 90.2%, iron rods, rods, angles and wires by 57.0%, food dough and preparations by 31.5%, and ready-made clothes by 22.6%. (Central Agency for Public Mobilization and Statistics (CAPMAS).
- And from this point, Egypt’s food industry exports increased 19% Year-on-Year (YoY) during the first nine months of 2021, ranking third among other Egyptian sectors exporting to foreign markets, Trade and Industry Minister Nevine Gamea announced.
Total food exports recorded 3.1 billion USD during the January-September period of 2021, compared to %2.8 billion in the same period of 2020. Gamea added that Egypt’s exports of agricultural crops in the first nine months of 2021 hit 1.9 billion USD, compared to the 1.8 billion USD achieved in the same period last year, recording an 8% increase. (Arab Finance)
- On the other hand, the General Authority for the Suez Canal Economic Zone (SCZone) has secured an 1.5 billion EGP bridge loan from the National Bank of Egypt (NBE) and Banque Misr.
SCZone will use the loan until its 10 billion EGP loan agreed with a syndicate of banks earlier this year has been disbursed. In April, the SCZone signed an agreement for the 10-year loan with a group of banks including CIB, Banque du Caire, the Arab African International Bank and Suez Canal Bank to fund infrastructure projects. (Al Shorouk News)
- Equally important, the Gulf banking syndicate started disbursing a total of 3 billion USD loan to Egypt’s government.
The three-year loan is being arranged by First Abu Dhabi Bank and Emirates NBD, and is split 50-50. Up to 1.5 billion USD are allocated to ESG projects and 1.5 billion USD are going to Sharia-compliant investments. A mixture of standard and Islamic banks is involved in the transaction. The banks are Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Mashreq Bank, Bank ABC, National Bank of Kuwait, Ahli United Bank of Kuwait, Al Ahli Bank of Kuwait and Italy’s Intesa Sanpaolo Bank, in addition to the lead arrangers. This is considered the second loan the government has taken out from Gulf financial institutions since 2020. (Al Shorouk News)
- Also, UNESCO and Huawei announced the launch of their joint project “Technology-enabled Open School Systems for All” (TeOSS) in Egypt, Ghana, and Ethiopia.
The project intends to power the digital transformation of education and support UNESCO member states in building resilient education systems that can withstand global disruptions such as COVID-19. The multi-country initiative helps to advance the Sustainable Development Goal 4 on Education. (Arab Finance)
- Qatar Energy will acquire a 17% stake in in two Shell-operated concessions (Block 3 and Block 4) in Egypt's Red Sea region.
Shell will remain the main operator of the concessions. Founded in 1974, Qatar Energy is a state-owned public corporation responsible for all phases of the oil and gas industry in the State of Qatar. (Reuters)
- And for our EGX & companies talks, the rights issue of International Company for Medical Industries (ICMI) has been oversubscribed by 69.21%.
Nearly 33.482 million shares were oversubscribed out of total 48.379 million shares, at a total value of 33.482 million EGP. The company’s issued capital will be increased to 72.569 million EGP from 24.189 million EGP by 48.379 million EGP through the issuance of 48.379 million shares at a par value of 1 EGP per share, with issuance fees of 2.5 EGP per share. (EGX)
- Brothers Solidarity for Real Estate Investment and Food Security (BSRF) decided to split the nominal value of the company’s stock to 0.10 EGP.
The company’s issued capital will remain the same at 4 million EGP distributed over 40 million shares, instead of 4 million shares, at a par value of 0.10 EGP per share. This comes as per the decision of the extraordinary general meeting (EGM) dated April 11th, 2020. Trading on Brothers Solidarity’s shares in accordance with the new nominal value will commence as of December 21st, 2021, via Misr for Central Clearing, Depository, and Registry (MCDR). (EGX)
- Furthermore, Telecom Egypt (ETEL) has signed a cooperation agreement with Palm Hills Development Company (PHDC).
Under the agreement, Telecom Egypt will provide integrated telecommunication services to the city of Badya, located in the 6th of October city in West Cairo. Telecom Egypt will develop the technological infrastructure of Badya as well as extend the optical fibers network, in order to offer high-speed internet connections to all residential, commercial, recreational units. (Al Borsa Newspaper)
- In addition, Credit Agricole Egypt (CIEB) decided to raise its issued capital to 5 billion EGP from 1.24 billion EGP.
The capital increase amounts to 3.756 billion EGP distributed over 939.083 million bonus shares at a par value of 4 EGP per share. Accordingly, the bank decided to distribute 3.0203655637-for-1 bonus shares (a ratio of 3.0203655637:1) as of December 30th, 2021, with the eligibility for shareholders until the trading session dated December 29th, 2021. It is worth noting that the bank recorded a consolidated net income after tax stood at 1.179 billion EGP in the first nine months of 2021, up from 1.036 billion EGP in the year-ago period. (EGX)
- Likewise, Eastern Company (EAST) has signed an agreement with Al Mansour International Distribution Company to manufacture EVOLVE products of the brand name Davidoff.
EVOLVE products are one of the products of Imperial Tobacco Group, which Al-Mansour Group has presented in the Egyptian market for a long time. The new product, which is only being manufactured at three factories owned by Imperial Tobacco Group across the world, will be manufactured at the factories of Eastern Company. This marks Eastern Company’s ability and expertise as a “well-established entity” in terms of productivity as per the latest and global standards in manufacturing different products of cigarettes. Davidoff EVOLVE will be sold within the medium pricing segment at a price of 32 EGP per pack of 20 cigarettes. (EGX)
- Also, the European Bank for Reconstruction and Development (EBRD) has approved a 15 million USD equity commitment to Algebra Ventures’ second tech fund.
The fund will form part of the Bank's Early-Stage Innovation Facility, a EUR 100 million facility through which the EBRD selectively invests in early-stage venture capital funds. The Bank's participation will support the Fund in reaching its target size. Algebra Venture is targeting a 60 million USD first close for its latest fund, which was initially targeted for the third quarter (Q3) of 2021. (EGX)
- Healthcare group Alameda signed a memorandum of understanding (MoU) with the Ministry of Housing, Utilities and Urban Communities in a move to invest 1 billion EGP to operate and manage a 300-bed hospital in the New Administrative Capita (NAC).
The investment comes as part of Alameda’s wider expansion plan in Egypt, which will see it invest 5 billion EGP over the next three to five years to bring its total investments in the country to 10 billion EGP. Chinese construction company China State Construction Engineering and Al Hazeq Construction will construct the facility, while architecture firm HKS will consult on the project’s construction and management. (Arab Finance)
- Most importantly, Forbes, the global business magazine, has revealed its list for the “Top 50 Real Estate Developers in the Middle East and North Africa (MENA) during 2021”.
The real estate sector is one of the main pillars that support the economy in the MENA region, especially in the GCC countries. Megaprojects are being developed across the MENA region by both public and private sectors, particularly in Saudi Arabia, the UAE, and Egypt. These projects positively impact the real estate sector’s outlook in the region for the coming few years. (Forbes)
- And finally, El Ezz Dekheila Steel – Alexandria (EZDK) (IRAX) is getting ready to acquire the stake owned by businessman Ahmed Hamdy Abou Hashima in Egyptian Steel Group in a transaction valued at 2.5 billion EGP.
The transaction will be fully financed in cash by EZDK. The agreed-upon value of the acquisition transaction amounts to 2.5 billion EGP, instead of the fair value (FV) of the Egyptian Steel Group estimated at 2.7 billion EGP. As per the consolidated financial statements for the period ended September 2021, EZDK has a cash balance of 3.3 billion EGP. Moreover, the sources pointed out that 50% of the value of the transaction will be paid once the acquisition is being implemented, with the remaining amount to be settled over two annual installments at a rate of 25% per annum. (Al Borsa Newspaper)
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