TODAY’S TOP NEWS & ANALYSIS
IMF deal awaits final touches
Egyptians living abroad will be able to import new cars free of duties
HDBK announces dates for its stock dividend
Natural gas hikes making brick manufacturers look for new energy sources
Sidpec taps NI Capital to acquire Ethydco through a share swap
Saudi Public Investment Fund (PIF) eyes a stake in an Egyptian education company
MACRO
IMF deal awaits final touches
Egypt’s Finance Minister said that an assistance package from the IMF is in the final confirmation stage. (Enterprise)
Egyptians living abroad will be able to import new cars free of duties
Egyptians who are residents abroad will be able to import a new car and eventually get a full rebate on all customs fees and taxes if they pay the dues upfront in foreign currency. The car owner will pay the vehicle's import fees, including customs fees, VAT, and other taxes upfront to the Ministry of Finance when they import the new car. They will then receive a full rebate on the dues in five years’ time in EGP at the prevailing USD/EGP exchange rate at that time and without interest. (Enterprise)
CORPORATE
HDBK announces dates for its stock dividend
Housing & Development Bank [HDBK] will distribute its 2.5-for-1 stock dividend on 27 October 2022, with the last day of eligibility 26 October 2022. This increase was approved by the EGM held back on 30 March 2022, raising the bank's authorized capital from EGP3bn to EGP10bn and its paid-in capital by EGP3.8bn from EGP1.5bn to EGP5.3bn at a par value of EGP10/share, financed through reserves and retained earnings. This will bring HDBK in compliance with the CBE's minimum capital requirements of EGP5bn. (Company disclosure)
Natural gas hikes making brick manufacturers look for new energy sources
Brick manufacturers are currently looking to add refuse-derived fuels (RDF) and biological wastederived fuels to their fuel mix to lower their costs after the latest natural gas price hike. We note that natural gas for brick manufacturers is priced at EGP110/mmbtu (+50% vs. EGP73/mmbtu previously). (Al-Borsa)
Sidpec taps NI Capital to acquire Ethydco through a share swap
Sidi Kerir Petrochemicals' [SKPC] BoD agreed to tap NI Capital to study the scenarios of SKPC acquiring its 20%-owned Ethydco through a share swap agreement. (Company discourse)
Saudi Public Investment Fund (PIF) eyes a stake in an Egyptian education company
It has been reported that the Saudi Public Investment Fund (PIF) is negotiating to acquire a stake in an undisclosed educational company. Reportedly, the company owns and operates multiple entities across different educational levels. In our opinion, we think that Cairo for Investment & Real Estate Development [CIRA] fits this profile quite well. Please refer to our Core Coverage report published last May. (Al-Mal)
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