Today’s Top News & Analysis
Egypt closes the first tranche of its sukuk program
Natural gas car conversions to reach 100,000 cars/year in 2023
More investments in the nation’s automotive industry over the next three years
25% of new hotels company are open for grabs
Negotiations for United Bank's acquisition halted
Kima denies seeking USD300mn funding for the new plant
Some CNFN's shares transferred to its ESOP program
Egypt-TEDA SEZone seeks to attract new projects worth USD5bn
Almarai fully acquires Beyti
The IPO of Misr Life Insurance still on track
MACRO
Egypt closes the first tranche of its sukuk program
Egypt closed its first USD1.5bn sukuk issuance. The oversubscription caused the yield to fall to 10.875% from an initial yield of 11.625%. About 250 global investors subscribed to the sukuk which attracted new investors to our debt markets such as the Gulf, East Asia, the US, and Europe. Additionally, Egypt will issue an additional USD3.5bn in sukuk program over 3 years. (Cabinet statement)
Natural gas car conversions to reach 100,000 cars/year in 2023
The Minister of Petroleum & Mineral Resources expects to increase the number of natural gas-converted cars to 100,000 cars/year (+20% y/y) in 2023, noting the following:
· The average natural gas car fuel sales increased to 109mn cubic meters in January 2023 (+15% vs. 2022 monthly average), which replaces more than 88,000 tons/month of liquid fuel.
· The number of car conversion centers reached 130 in 2022, with plans to add 45 centers in 2023.
· The number of natural gas refueling stations increased by 700 stations to 909 stations in the past two years, with plans to add 100-120 new stations in 2023.
We note that Qalaa holding’s [CCAP] TAQA Gas currently operates 61 natural gas refueling stations, with plans to increase the number to 108 stations in 2023. TAQA Gas also owns 17 conversion centers with a conversion rate of 31,500 cars/year, with plans to increase the conversion rate by 8,000 cars/year. (Egypt Oil & Gas)
More investments in the nation’s automotive industry over the next three years
The Prime Minister said that if the 3 agreements signed with Stellantis, Nissan, and Al Mansour are implemented, these companies will invest USD145mn over the next three years producing a total of 60,000-70,000 conventional and electric vehicles annually. Some of which are to be exported. (Enterprise)
25% of new hotels company are open for grabs
The Public Enterprise Minister said that the government will offer a 20% stake in its new hotels company to strategic investors, followed by a 5% placing in the stock market. (Enterprise)
CORPORATE
Negotiations for United Bank's acquisition halted
Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has reportedly halted negotiations with Egypt to acquire The United Bank. The reason behind the termination is that the EGP devaluation made it difficult to determine the value of the deal that was originally reported to be around USD600mn. (Asharq Business)
Kima denies seeking USD300mn funding for the new plant
In an official statement published yesterday, Egyptian Chemical Industries (Kima) [EGCH] denied circling rumors that it was seeking USD300mn funding for its new Nitric Acid & Ammonium Nitrate production plant, either through a partnership with a strategic investor or debt. Kima also assured that the project is still under review and the capital structure and investment cost are yet to be determined. (Company disclosure)
Some CNFN's shares transferred to its ESOP program
A trade took place on Contact Financial Holding’s [CNFN] shares for a total number of 4.6mn shares worth some EGP17mn as part of CNFN’s ESOP program. (Company disclosure)
Egypt-TEDA SEZone seeks to attract new projects worth USD5bn
Egypt-TEDA SEZone Development Co., which invests in the Sokhna region of the Suez Canal Economic Zone, is seeking to attract seven new projects over the coming period with investments worth USD5bn. (Al-Borsa)
Almarai fully acquires Beyti
Almarai Investment Holding, a KSA-based company acquired PepsiCo’s 48% stake in Beyti. The acquisition was worth USD68mn; Almarai now fully owns Beyti. (Enterprise)
The IPO of Misr Life Insurance still on track
With the exception of a few minor technical aspects that advisors are still working out before June 2023, state-owned Misr Life Insurance is prepared to offer a stake in the EGX. (Enterprise)
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