Good afternoon, folks, and welcome to the almost-weekend. We have a brisk issue for you today, with news of Egypt eyeing a return to global debt markets as early as this month. Elsewhere, safe-haven assets keep climbing, and we sit down with the man behind Villa Atouta to talk heritage hospitality.

THE BIG STORY TODAY-

📍 Egypt is in advanced talks with transaction advisors to issue between USD 1-1.5 bn in Eurobonds as early as this month or the next, a senior government official tells EnterpriseAM. The Finance Ministry is looking to capitalize on a sharp narrowing in Egypt’s risk premium, with five-year credit default swaps falling below 270 bps — their lowest level in six years.

Why it matters: The country is moving to reassert its presence in global debt markets to secure lower-cost funding as its credit rating improves. Yields on Egyptian international bonds have retreated by 300-400 bps year-on-year, offering a window to raise capital that was effectively closed to Egypt 18 months ago.

If market appetite remains high, the government may expand the issuance to USD 2 bn, our source told us. Later on in the year, the ministry also plans to issue USD 500 mn worth of green samurai bonds before the fiscal year comes to a close in June.

THE BIG STORY ABROAD-

🌐 Growing geopolitical tensions continue to drive the increasing demand for safe-havens as gold reaches a record high on Wednesday, with spot gold jumping another 0.9% to over USD 4.6k per ounce. Silver broke the USD 90 mark, with spot silver jumping 4% to USD 90.55 per ounce.

^^Read more on: CNBC and Reuters.

Meanwhile, oil prices have risen as protests in Iran intensify, with WTI crude and Brent seeing price increases of more than 2.5%. Iran is under an internet blackout and the death toll has reached 2.6k, according to the Human Rights Activists News Agency. Tehran has threatened to hit US bases in neighboring countries like Qatar if Washington maintains threats to intervene in the protests.

^^Read more on: CNBC and Reuters.

In other business news, Saks Global, owner of luxury outlet Saks Fifth Avenue, filed for bankruptcy, carrying a debt of USD 2 bn after a USD 2.7 bn merger with retailers Neiman Marcus and Bergdorf Goodman in 2024.

^^Read more on: Semafor

ALSO- Netflix is preparing an all-cash offer for Warner Bros Discovery to secure and expedite its takeover of the studios and fend off the opposing bid from Paramount.

^^Read more on: The Guardian.

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

  • Real estate developers could soon receive a 10-year tax break for launching projects in remote areas, away from the country’s current urban clusters;
  • We may be close to self-sufficient when it comes to sugar production, but manufacturers say they’re bleeding money. As the sugarcane harvest kicks off in Upper Egypt, a sharp divide has emerged between the narrative heralding the strategic success of boosting domestic supply and the difficult financial reality facing the country’s refiners as they work overtime to ensure supply targets are met;
  • The board of B Investments has green-lit the IPO of Gourmet, the high-profile grocer and food brand. This comes after last week’s reports that the PE-backed grocer had filed for approval from the Financial Regulatory Authority to push ahead with the initial public offering.

☁️ TOMORROW’S WEATHER- We’re in for a cloudy day with some sunshine here and there in Cairo tomorrow. Temperatures are set to peak at just 21°C before dropping down to 12°C, according to our favorite weather app.

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