Good morning, folks. We hope you’re staying cool and hydrated as the heat wave continues in Cairo. It is shaping up to be another busy day, so let’s jump right into it.

You can pay in EGP after all: Market watchers welcomed news yesterday that Qalaa Holdings shareholders interested in buying into its debt purchase transaction will be able to pay in EGP rather than having to transfer funds abroad in USD, as was originally the case. The Financial Regulatory Authority made the announcement (pdf) yesterday.

The background: Shareholders looking to participate in the buyback — a series of transactions that will see Qalaa retire some USD 430 mn in foreign-currency debt — were originally required to pay their share of the transaction in foreign currency in a UAE bank account.

Additional clarity for the shareholders: Qalaa Holdings plans to publish a report detailing its debt buyback plan, after the FRA and company ordinary general assembly approve the report’s content, the company said in an EGX disclosure (pdf). The Authority has asked Qalaa to “immediately” disclose additional information regarding participation in the buyback process. Shareholders of Citadel Capital Partners — the vehicle through which the company’s founders and top executives own their equity — will not vote on the matter at Qalaa’s ordinary general assembly, scheduled for 30 May.

Want the full story? We sat down with Qalaa founder and chairman Ahmed Heikal last week.

WATCH THIS SPACE-

#1– Basata to head to the EGX in 2025? Private equity firmBPE Partners is planning on offering around a 25% stake in its fintech subsidiary Basata Holding for Financial Investments on the EGX within 18 months, BPE co-founder Aladdin Saba told Al Mal. The move comes as part of Basta’s plan to double its capital to EGP 1.4 bn.

Basata? Initially dubbed Ebtikar, Basata was established as a JV between B Investments, BPE Partners, and MM Group for Industry and International Trade in 2017. Basata’s e-payment arm provides point-of-sale machines to merchants, has its own app — dubbed Basata Pay — for consumers to pay bills and make other transactions remotely.

#2- Work on Ras El Hekma to kick off sooner than expected: ADQ plans to break ground on infrastructure and construction work for its Ras El Hekma project before the end of the year, Housing Minister Assem El Gazzar told Asharq Business, explaining that ADQ has already acquired the the necessary permissions and licenses. ADQ was initially expected to break ground on the project early next year.

ICYMI: Egypt expects to transfer the land for the project to the newly established Ras El Hekma for Urban Development Project Company “in the coming days,” cabinet spokesman Mohamed El Homsani said earlier this week.

#3- ACUD pushes back IPO advisor selection: The Administrative Capital for Urban Development (ACUD) will postpone selecting an international financial advisor for its planned IPO until 4Q 2024, chairman Khaled Abbas told Asharq Business. ACUD was aiming to offer 5-10% of its shares on the EGX in 2Q 2024.

#4- The Housing Ministry is aiming to sell some USD 6 bn in land and housing units to foreigners and Egyptian expats this year, Deputy Housing Minister for Technical Affairs Abdul Khaleq Ibrahim told Asharq Business. The ministry will set up a new company to manage and advertise real estate assets to buyers abroad. The new entity will work with the Central Bank of Egypt and the Finance Ministry, and will aim to sell 25k residential and commercial units during its first phase, Ibrahim said, without providing a specific timeline.

Also on the cards: Egypt is considering setting up real estate funds, which will invest in the central business districts of the new capital, New Alamein, and Ras El Hekma, Ibrahim added.

Want more? We delved into Egypt’s potential to fast track real estate exports in a recent Hardhat. Read the piece here.

FROM THE RUMOR MILL-

TE no longer looking to sell stake Vodafone Egypt? State-run Telecom Egypt has reportedly backed out of its plan to sell a portion of its 45% stake in Vodafone Egypt, after receiving underwhelming offers, Asharq Business reports, citing two sources it says are in the know. The offers failed to “meet the aspirations” of Telecom Egypt’s shareholders who had received EGP 2.1 in dividends from their Vodafone stake last year and are on track to get EGP 3 bn in 2024, one of the sources explained. And while TE didn’t confirm or deny the news of backing out of the sale, it said that it hadn’t received any official offers, according to an EGX disclosure (pdf).

A turn of events: Telecom Egypt reportedly resumed negotiations with the Qatar Investment Authority in March to acquire a portion of its stake in Vodafone Egypt. The Qatari fund has reportedly been eyeing TE’s share in Vodafone Egypt since 2022, but talks have failed to progress after the two sides failed to reach an agreement over the stake size.

PSA-

WEATHER- It’s another hot day in Cairo, with a high of 41°C and a low of 28°C, according to our favorite weather app.

It’s a lot cooler in Alexandria, with a high of 33°C and a low of 24°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Want to subscribe? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

HAPPENING TODAY-

#1- Shoukry in Greece: Foreign Minister Sameh Shoukry is in Athens today to discuss Egyptian-Greece relations with his Greek counterparts, a statement from the ministry said. The minister will also meet with Greece’s Copelouzos Group to follow up on a project to link the power grids of Egypt and Greece — dubbed GREGY — that will enable exports of Egyptian renewable energy into Europe.

#2- All about green industrial parks: The Trade Ministry and the UN Industrial Development Organization (UNIDO) are hosting a Global Eco-Industrial Parks Program-affiliated forum at Cairo’s Dusit Thani Hotel, UNIDO said in a press release (pdf). The forum aims to support Egypt’s transition to eco-industrial parks and promote sustainable industrial development. It will include sessions on financing, an exhibition area, and chances for professionals to network.

DATA POINT-

Road accident fatalities in the country dropped 24.5% y-o-y in 2023 to 5.9k, according to figures (pdf) from state statistics agency Capmas. Although fatalities fell, road accident injuries rose 26.8% y-o-y to 71k during the year.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how the country’s first specialized industrial investment fund set to launch later this month is planning to give local SMEs a boost. Check out the story here.

THE BIG STORY ABROAD-

One story has captured the attention of the foreign press this morning: Search and rescue operations are underway to find Iranian President Ibrahim Raisi and Foreign Minister Hossein Amirabdollahian after their helicopter crashed in the country’s northwest. Their lives are “at risk,” according to Iran’s state news agency, Irna.

The search is being slowed by poor weather, a contributing factor in the crash. The two were returning from a visit to the border with Azerbaijan, where they inaugurated a dam, media reports suggest.

Business as usual? Iranian Supreme Leader Ayatollah Ali Khamenei says there will be “no disruption to state affairs,” Reuters reports.

The story is everywhere: (CNBC | Financial Times | Bloomberg | AP | Reuters)

OTHER STORIES on which you’ll want to keep any eye as the week unfolds:

  • We could see a verdict as early as this week in Donald Trump’s hush-money trial in New York;
  • Boeing will send two astronauts to the space station tomorrow in the first crew test of its Starliner capsule;
  • G7 finance ministers and central bankers will meet on Thursday in Italy to chew over the state of the global economy.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We explore the strengths and weaknesses of the British and US education systems in Egyptian schools.

Tags: