Good afternoon dear readers, and happy new Islamic New Year (and the long weekend it has brought forth). We need not remind you all that Egypt is off starting tomorrow through to next Sunday for the Islamic New Year and Revolution.

Sports to the rescue: For those not planning any trips this long weekend, there is an action-packed schedule of local and global sports events, including the local League Cup, club friendlies and the Fifa Women’s World Cup. Those that can stay up late might want to catch Messi make his Inter Miami debut this Saturday. More on that in today’s Enterprise Recommends, below.

THE BIG STORY TODAY

EFG Hermes closes EGP 472.5 mn securitized bond issuance for PHD: Real estate developer Palm Hills Development (PHD) has closed a EGP 472.5 mn securitized bond issuance, according to a joint press release (pdf) from Palm Hills and EFG Hermes, which acted as sole financial advisor, bookrunner, and underwriter on the sale. The three-tranche issuance carries tenors of 13, 36, and 84 months, rated AA+ through A by Middle East Rating & Investors Service. This issuance brings PHD’s total issued securitized bonds to EGP 1.1 bn in 2023.

THE BIG STORY ABROAD-

UK inflation dips below 8%: The UK’s annual inflation slowed to its lowest pace last month since March 2022, with the consumer price index rising 7.9% in June, down from 8.7% in May, according to data from the UK Office of National Statistics. On a monthly basis, inflation rose by 0.2% in June 2023, down from a rise of 0.7% in June 2022. The UK’s statistics agency attributed the drop to falling fuel prices and food prices rising at a slower pace. This was a larger drop than expected, as economists polled by Reuters had predicted inflation would rise by a steeper margin to 8.2% last month.

What does this mean for BoE rates? The expectation remains that the Bank of England (BoE) will continue to raise interest rates when its Monetary Policy Committee meets next month, Paul Dales, economist at Capital Economics, tells the FT. While inflation did fall below expectations, it remains among the highest in Europe and is well above the 2% target set by the BoE. Economists are predicting, however, that the central bank will raise rates by 25 bps instead of 50 bps priced by markets ahead of the inflation report.

The story is getting coverage in the international press: Reuters | Bloomberg | Financial Times

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Beltone wraps up record capital increase: Investors fully subscribed to Beltone blockbuster EGP 10 bn capital increase, which sees global institutional investors taking stakes in the investment bank. The issuance was nearly 5.5x oversubscribed.
  • MTI to acquire 40% stake in B Investments pharma subsidiary: EGX-listed firm MM Group for Industry and International Trade (MTI) is set to acquire a 40% stake in B Investments subsidiary B Pharma for some EGP 205 mn. B Investments will hold the remaining 60%.
  • More investment into the local fertilizer sector could be on the way: Egypt has received three offers from local and international investors to establish fertilizer complexes worth a combined USD 1.6 bn of investments in the so-called Golden Triangle in the Red Sea governorate.

MARK YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

STAY TUNED for more detail about our agenda.

DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the Enterprise Podcast and listen for yourself : The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum, which took place in May.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast . We’re releasing a new episode every Sunday morning.

IN THIS WEEK’S EPISODE- From deciding the target markets, to focusing on quality, marketing in new markets, and restructuring a business around exports, our panelists discuss and provide key insights on what businesses need to focus on when building an exports and FDI strategy. We were joined on that panel by Hossam Sallab, CEO and vice-chairman of Sallab Group and Royal Ceramica, Mark Wyllie, CEO of Beyti Egypt, and Kareem Abou Ghaly, the chairman and CEO of Pasta Regina.

☀️ TOMORROW’S WEATHER- Sunny skies and high temperatures persist at 39°C in the morning and will be dropping to a cooler 26°C in the evening, according to our favorite weather app.

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