RENEWABLES-

AfDB mulls funding our 1.1 GW wind farm: The African Development Bank (AfDB) is considering financing the 1.1 GW wind farm in the Gulf of Suez being carried out by Saudi Arabia’s ACWA Power and Hassan Allam Holding, according to environmental studies published on the lender’s website.

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Refresher: The wind farm — the largest of its kind in the Middle East — has a price tag of USD 1.5 bn. According to documents released by the bank, construction on the project is expected to begin in 4Q 2024 and continue on for 30 months. The wind farm is slated to start commercial operations in late 2027 and is planned to run for 25 years.

A bit later than initially planned: Local news outlet Al Mal reported in late 2023 that the companies would break ground on the project in early 2024, while ACWA Power said the farm would be operational by the end of 2026.

CAPITAL MARKETS-

A gold SPAC: Gold investment firm Dahab Masr and fintech startup Bokra are looking to launch their own SPAC — which could be Egypt’s first — which will target acquisitions of firms in the precious metals sector, Al Mal reports, citing Dahab Masr CEO Fady Kamel. Work is underway to fulfill the Financial Regulatory Authority’s recently-updated SPAC regulations.

Not Dahab Masr and Bokra’s first link up: The two companies in May launched a platform — dubbed Bokra Dahab — that allows users in Egypt, UAE, and KSA to invest in precious metals.

MANUFACTURING-

Honor could start manufacturing its phones locally: Chinese smartphone maker Honor is reportedly considering setting up a factory to produce its devices in Egypt, with initial investment of USD 10 mn, Al Mal reports, citing unnamed industry insiders. The company is still in talks with the government over the location of the proposed project, which is expected to begin operations in 2025. Honor is currently conducting feasibility studies for setting up production facilities in Egypt, aiming for a local component ratio of up to 45%. The Chinese firm plans to capture a 10% market share of the local smartphone market and has plans to export part of its production.

REAL ESTATE-

Palm Hills heads to KSA: Palm Hills Development has set up a Saudi branch and appointed SODIC’s former managing director Magued Sherif (LinkedIn) as its CEO, it said in an EGXdisclosure (pdf).

Other local developers have also made their way to the Kingdom, including real estate giant Talaat Moustafa Group (TMG), which in May launched a smart residential development in Riyadh. The project has hit SAR 3.3 bn in sales since its launch.

SUBSIDIES-

Gov’t hikes subsidized wheat prices: The Supply Ministry has raised the price of wheat sold to mills for subsidized bread baking by about 20% to some EGP 13.8k per ton starting August, Asharq Business reports, citing a government document. Mills have also increased the price of flour supplied to bakeries producing baladi bread by 35% to EGP 16k per ton. The price hikes will not affect the cost of subsidized bread, which will remain at EGP 0.20 per loaf, an unnamed government official told Asharq Business. The official added that the decision aims to “regulate the wheat system in mills and bakeries.”

DEBT-

Ibn Sina Pharma denies pressure from creditors: Ibn Sina Pharma has refuted reports that it's under pressure from creditors to sell assets to settle overdue debt, it said in an EGX disclosure (pdf). The pharma distributor stated that its credit facilities from banks are “proof of their confidence in the company's ability to repay.” It clarified that these facilities, which are used to finance part of its working capital, have not yet matured.

ICYMI: Local news media Al Shorouk reported on Saturday that Ibn Sina Pharma was planning to sell EGP 900 mn worth of assets to settle part of its outstanding debt, claiming that banks demanded that the company reduce its debt-to-equity ratio.

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