The committee of SMEs, in collaboration with the Egyptian Microfinance Federation, aim to boost SMEs contribution to the national economy
For our top talks today, the committee of small and medium-sized enterprises (SMEs), in collaboration with the Egyptian Microfinance Federation, aim to boost SMEs contribution to the national economy. The committee is eyeing bigger contribution by SMEs to the national economy in order to reach 80 to 90% as in some major countries, noting that in Egypt it only stands at 20%. The announcement took place during a meeting of the committee with the Egyptian Businessmen’s Association (EBA) and in the presence of chairperson of the Egyptian Microfinance Federation (EMF) Dr Mona Zulficar to probe means of boosting joint cooperation in terms of financing small, medium and micro-sized ventures. (Arab Finance)
- In a similar context, the Financial Regulatory Authority (FRA) approved a draft amendment to some provisions of the rules regulating bonds, securitization bonds, and sukuk in the Capital Market Law No. 95 of 1992.
The amendments added four new financing tools in the capital market: social bonds, sustainable development bonds, environmental social and governance bonds, and gender equality and women’s empowerment bonds. (Arab Finance)
- Most important, the fund to support the capital of emerging financial technology companies, established in partnership between Al-Ahly, Egypt and Cairo banks, will be launched before the end of this year, with the value of its first closing amounting to 85 million USD.
Al-Ahly, Egypt and Cairo banks previously announced their intention to launch a fund to support the capital of emerging technology companies with a minimum capital of one billion Egyptian pounds, with the possibility of any other banks or financial institutions wishing to participate, in line with what they have done. The fund will direct investments to emerging financial technology companies, whether these companies are local or international, intending to launch their business in the Egyptian market. (Al-Mal)
- And for our EGX & companies talks, 3 financial leasing companies are preparing to issue securitization bonds worth 7.9 billion pounds, by mid-December.
These three companies are "GB Lease", "Corp Lease" and "Global Lease" for financial leasing. “GB Lease” alone aims to issue two securitization bonds, the first with a value of 2.6 billion EGP, and the second, with a value of 1.6 billion EGP, in mid-December, with the Commercial International Bank (CIB) assuming the role of issuance manager. “Corp Lease” is also preparing to issue securitization bonds worth 2.7 billion EGP in the middle of the month, with Misr Capital to play the role of the issuance manager and financial advisor, and Al-Derini Law Firm and Legal Consultations will undertake the task of legal advice. Global Lease will issue securitization bonds worth one billion EGP in mid-December in 3 tranches of 13, 37 and 60 months. (Al-Mal)
- In a similar context, Investcorp is preparing to sell Italian motorcycle apparel company Dainese in a deal likely to value the company, favored by Valentino Rossi, at around 750 million EUR.
Bahrain-based private equity firm Investcorp has commissioned Lazard to start the sale of the company at the beginning of 2022. The fund aims to raise 500 million USD to invest in high-growth companies and underfunded sub-sectors, such as health care, the consumer sector, transportation, logistics, and business services. (Al-Mal)
- The board of directors of Edita Food Industries (EFID) approved the confidential friendly settlement with Chipita Industrial and Commercial Company and Chipita Participations Ltd.
This settlement is related to the arbitration case No. 1,435 for 2020, which is pending before the Cairo Regional Centre for International Commercial Arbitration regarding the manufacturing and technical services contract signed between the three companies on April 29th, 2011. (Arab Finance)
- E-finance for Digital and Financial Investments (EFIH) and Universal Health Insurance Agency (UHIA) have launched eHealth company with EGP 100 million in capital.
e-finance contributes to eHealth’s capital with 35%, while the UHIA’s contribution to eHealth’s stood at 50% of total shares. eHealth will provide manage and operate technological services for the comprehensive health insurance system, which is set to cover 100 million people over 10 years. (Arab Finance)
- Simplex Industrial Solutions and Software aims to expand the export of CNC machines to 12 Arab and African countries over the next three years.
Ahmed Shaaban, CEO of the company, said that Simplex plans to increase production rates of CNC digital transformation machines by establishing a new factory on an area of 5,000 square meters in the Industrial Zone of the Tenth of Ramadan in order to meet the needs of the local market and work on exporting to neighboring countries. Cymplex aims to focus on export projects for CNC numerical control machines produced locally, with a range of 35-40% of the factory's total production capacity during the coming period. (Al-Mal)
- Egyptian Financial Group Hermes Holding (EFG Hermes) (HRHO) and Saudi Fransi Capital have acted as joint bookrunners and brokers to Growth Opportunities Company for Trading.
The two companies have been jointly successful in concluding the sale of Growth Opportunities’ entire stake in Theeb Rent a Car, via an accelerated equity offering. Under the sale transaction, 9.03 million shares, accounting for 21% of Theeb Rent a Car’s outstanding shares, were offered for sale to institutional investors. The transaction was carried out through 19 block trades at a total value of SAR 478.59 million, equivalent to a price of SAR 53 per share. Following the completion of the sale, Theeb’s free-float shares as a percentage of outstanding shares rose to 63.45%, with the remaining 36.55% being held by other substantial shareholders. (Arab Finance)
- FinTech and digital fees management company, Klickit, has secured its first round of funding.
The investment round was led by EFG Finance and Camel Ventures, the venture capital arm of DFin Holding. The main purpose of the investment is to build and enhance KlickIt’s tech stack, and to build and deploy value added services to cross-sell new services for the company’s large network of schools and universities as well as their rapidly growing customer base. KlickIt is currently serving more than 55,000 Egyptian public schools, with over 25 million students, under the Ministry of Education. This is in addition to a private entities’ portfolio of 230 educational entities of different sizes. (Arab Finance)
- Furthermore, the First Real Estate Finance Company aims to achieve financing worth one billion EGP next year, as part of the company's expansion plan to add new segments and clients in the local market.
The company was targeting 400 million EGP in financing in 2021, but it was able to exceed those goals, which prompted it to reconsider plans for the next year, and plan to cross the 1 billion EGP barrier next year, with a plan to increase it. Annually between 25-30% annually, reaching more than 2 billion EGP in 2025. (Al-Mal)
- Finally, for our top talks abroad, the price of the dollar rose slightly during trading yesterday, Wednesday, with the increased volatility of the euro due to concerns about the new mutated Omicron from the Corona virus, and the dollar was supported by renewed expectations of raising interest rates.
The dollar index rose 0.03% to 95.997 at 0920 GMT, after posting its strongest monthly performance since June, despite the turmoil caused by the Omicron spread. The volatility of the dollar against the euro reached its highest levels this year, with the single European currency rising to its highest level in two weeks on Tuesday, before falling back as the dollar rose. Federal Reserve Chairman Jerome Powell indicated that the bank may accelerate the pace of tapering its bond-buying program during its meeting this month and told lawmakers that it was time to stop describing price pressures as temporary. (Reuters)
- The Turkish Central Bank announces direct intervention in the foreign exchange market to stop the lira's bleeding against the dollar, justifying that it was trying to control the formation of unhealthy exchange rates.
The central bank's intervention by selling foreign currencies in support of the lira comes for the first time in seven years. Last Tuesday, the lira witnessed a significant decline and achieved its worst close at 13.4732 levels, a decline of more than 5%, after the statements of Turkish President Recep Tayyip Erdogan, in which he confirmed the continuation of the policy of reducing Turkish interest rates, and that he would work to enter the upcoming presidential elections amid low interest rates, With the aim of strengthening the Turkish labor market and attracting more investments. (Reuters)
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