Today’s Top News & Analysis
The Iraqi government renews its crude oil contract with Egypt
Foreigners’ holdings of Egyptian Treasury bills increased USD2.3bn in January 2023
The Egyptian Ministry of Agriculture releases amounts of corn and soybean
The Egyptian government postpones the sale of a stake in ETEL
EKHO increases its stake in AlexFert
Dina Farms to invest EGP380mn to increase its production capacity
Macro
The Iraqi government renews its crude oil contract with Egypt
The Iraqi Energy Ministerial Council has renewed its agreement with the Egyptian General Petroleum Corporation (EGPC) to supply 4mn barrels of Basra medium crude oil, under the same guidelines that were previously agreed upon. A total of 2mn barrels will be delivered in June and 2mn barrels will be delivered in August. (Al-Mal)
Foreigners’ holdings of Egyptian Treasury bills increased USD2.3bn in January 2023
Foreign investment in Egyptian Treasury bills increased in January 2023 to EGP315.2bn or the equivalent to USD10.4bn (+58% m/m in EGP terms, +36% in USD terms). (Economy Plus)
The Egyptian Ministry of Agriculture releases amounts of corn and soybean
Last week, the Egyptian Ministry of Agriculture released 124,000 tons of corn worth USD45mn and 16,000 tons of soybeans worth USD12mn, in addition to fodder worth USD3mn. (Mubasher)
Corporate
The Egyptian government postpones the sale of a stake in ETEL
The Egyptian government reportedly decided to postpone the sale of a 10% of its stake in Telecom Egypt [ETEL], citing unfavorable market conditions. (Asharq Business)
EKHO increases its stake in AlexFert
Egypt Kuwait Holding Co. [EKHO] increased its stake in its subsidiary Bawabet Al Kuwait Holding Co. (BKH) by 13.12%, equivalent to USD66.4mn. The deal, which implies a USD506mn valuation for BKH, brings EKHO’s total stake in BKH to 84.79%. We note that BKH is a privately-owned Kuwaiti company that owns 59.82% of EKHO’s subsidiary Alexandria Fertilizers Co. (AlexFert). As a result, EKHO’s indirect stake in AlexFert increased to 50.72% (+7.85%) while its direct stake did not change at 18.7%, adding up to a total effective stake of 69.42% for EKHO. (Company disclosure)
Dina Farms to invest EGP380mn to increase its production capacity
Dina Farms, a 54.9%-owned subsidiary of Qalaa Holdings [CCAP], plans to invest EGP380mn to increase the production capabilities of the cheese, yogurt, and juice segments. Dina Farms aims to increase dairy production by 9% annually, increase its herd by 7%, and raise its milk production to 120,000 liters by 2027. The company is also negotiating with the Egyptian government and an unnamed private-sector company to purchase two plots of land to add to its 10,000-acre land portfolio. In other news, CCAP’s chairman said that Dina Farms achieved sales of EGP1.4bn (+29% y/y) and an EBITDA of EGP229mn in 2022. (Al-Borsa: 1, 2, Al-Mal: 1, 2)
Markets Performance
Key Dates
Latest Research
