Energy as sets in focus: The Madbouly government is making the sale of several energy assets a priority, according to what appears to be a revised state ownership document that leaked yesterday. The long-talked-about sale of one of the Siemens-built combined-cycle power plants, together with two of the country's largest wind plants, are high on the priority list as the government looks to meet its USD 5 bn target before the end of the current fiscal year in June 2024.

POWER PLANT EXIT-

Gov’t to sell 70% stake in first of three Siemens power plants: The government is looking to sell a c. 70% stake in the 4.8-GW Beni Suef combined-cycle power plant, according tothe document.

What’s it worth? The document assigned an “indicative” value of USD 1.4-1.9 bn to the asset. Bloomberg reported in June that the transaction would be worth as much as USD 2 bn, including outstanding debt that, according to the document, currently totals EUR 735 mn in foreign-currency debt and EGP 3.5 bn in local-currency debt.

Actis and Edra in pole position: Private equity outfit Actis and Malaysian power company Edra are both considering making offers to acquire as much as 100% of the plant, media reports said in June.

Remember: The plant can’t be sold without the l enders’ blessing. Under the terms of the financing, Egypt can only sell the three power plants if it pays off the loans in full or gets the lenders’ permission. German development bank KfW, Deutsche Bank, and our friends at HSBC are the primary financiers of the project, lending Egypt EUR 4.1 bn of the EUR 6 bn price tag for all three plants. The Egyptian Electricity Holding Company began repayments in 2019.

HSBC on board to advise on debt restructuring: The government will this month sign to bring HSBC on as an advisor to help come to an agreement with the other twobanks, a government source confirmed to Enterprise. That agreement could involve restructuring the terms of the plant’s existing debt to account for changes in global interest rates, or having the government act as a guarantor to the new investors buying in, our source said. HSBC is also advising on the sale process, we understand.

How long will it take? The government is targeting to close the acquisition by the end of the fiscal year next June, according to the state ownership document.

ANOTHER SALE OF ZAFARANA-

More investors to get a piece of Zafarana? A further stake in the Zafarana wind farm will be offered to international investors aside from the portion that the government has in principle agreed to sell to multinational shipping giant Maersk, according to the document. The Danish firm will receive the first four phases of the 545-MW power plant while the remaining four phases will be allocated to investors for green hydrogen projects, according to the document.

How long will it take? The state ownership document says the transaction should close by December.

HELWAN FERTILIZERS-

Strategics could get their hands on more of Helwan Fertilizers: The government is looking to sell up to 40% of the state-owned Helwan Fertilizers Company to a strategic investor, government sources confirmed to Enterprise. Local media had previously put the stake on offer at 20%, adding that Saudi wealth fund PIF and Abu Dhabi wealth fund ADQ were both eyeing stakes. Asharq Business originally reported the news.

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