Today’s Top News & Analysis
Final countdown begins on IMF long-awaited assistance package
CBE reportedly adopts SOFR for USD deposits
Suez Canal will offer new ship services next year
Ministry of Electricity to retain a minority stake in Beni Suef Electricity Co.
KIMA turned to profitability in 2021/22
Sidpec speaks up about the new EP mix pricing
TAQA Arabia launches its solar plant in Sharm El Sheikh
valU reportedly targeted by a UAE-based firm; EFG Hermes expands in education
MACRO
Final countdown begins on IMF long-awaited assistance package
IMF chief Kristalina Georgieva said that the assistance package could be finalized “within days”, adding that all “big policy issues” had been resolved, with only a few “smaller, technical details” yet to be ironed out. (Enterprise)
CBE reportedly adopts SOFR for USD deposits
Sources claim that the Central Bank of Egypt (CBE) is to adopt a new benchmark rate for pricing short-term USD deposits for up to one year. The new rate, known as Secured Overnight Financing Rate (SOFR), is going to replace the previously used London Interbank Offered Rate (LIBOR) completely by June 2023. This rate is thought to be more accurate and consistent with the USD yield curve. It also allows a maximum of +1% over the benchmark rate for banks to add as they see fit, without exceeding the limit ceiling. (Masrawy)
Suez Canal will offer new ship services next year
Suez Canal Economic Zone (SCZone) will provide new services to ships including bunkering and catering starting from the first quarter of next year. (Enterprise)
Ministry of Electricity to retain a minority stake in Beni Suef Electricity Co.
The Ministry of Electricity is looking to retain a minority stake in Beni Suef Electricity Co. before adding its assets to The Sovereign Fund of Egypt to be offered to strategic investors by Q1 2023. (Al-Mal)
CORPORATE
KIMA turned to profitability in 2021/22
Egyptian Chemical Industries (KIMA) [EGCH] achieved preliminary net earnings of EGP651mn in 2021/22 vs. net losses of EGP1.4bn a year earlier. Reasons for the massive profitability turnaround comes in light of strong top line growth of EGP4.4bn (+218% y/y) as well as achieving a GPM of 45.5% vs. GLM of 5.0% a year earlier. We note that EGCH suffered in 2020/21 from operational interruptions, coupled with high tax expenses. (Company disclosure)
Sidpec speaks up about the new EP mix pricing
Sidi Kerir Petrochemicals [SKPC] said that the cost of the ethane-propane (EP) mix will be reviewed monthly and the impact of the recent Cabinet decision will appear in future financial statements. The company made no remarks on whether the new formula will yield higher or lower EP mix cost compared to the previous pricing. (Company disclosure)
TAQA Arabia launches its solar plant in Sharm El Sheikh
Qalaa Holdings’ [CCAP] subsidiary, TAQA Arabia, announced the commissioning of the largest solar power plant in Sharm El-Sheikh, built on an area of 250,000 sqm with a production capacity exceeding 42 GWh/year at an investment cost of EGP250mn. (Press release)
valU reportedly targeted by a UAE-based firm; EFG Hermes expands in education
According to a media report quoting a reliable source, a UAE-based firm specializing in e-commerce is looking to acquire a controlling stake in valU, the consumer finance arm of EFG Hermes Holding [HRHO]. No further details were provided. Elsewhere, a consortium of Egyptian Education Platform and HRHO is said to have acquired a controlling stake in Selah El Telmeez Co., a well-known education books publisher. (Shorouk News, Al-Mal)
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