Good morning, folks. We are closing out the week with a brisk issue led by news of the Finance Ministry mulling tapping the international debt market.
WATCH THIS SPACE-
Is Egypt looking to tap the international debt market? Enterprise has learnt that a number of government officials are in London today to gauge foreign appetite for fresh debt issuances, including the possibility of a eurobond issuance.
The government is on the edge: Back in April, Finance Minister Mohamed Maait said that the government has not yet decided whether to tap the international debt market in the next fiscal year, adding that the ministry will begin looking into the matter within the first two months of the next fiscal year. If the government does decide to tap foreign debt markets, foreign issuances will account for only a small portion of its debt portfolio, he added.
How much are we talking? The government has jotted down USD 1.5 bn in foreign bond issuance for the fiscal year 2024-2025. Although the figure isn’t binding, it gives us an idea of how much international debt the government could be looking to issue next year.
A recap of this year: The government went through with local-currency issuances in China and Japan, which raised the equivalent of USD 980 mn in CNY- and JPY-denominated debt.
A note from the editor: An earlier version of the story above incorrectly noted that Egypt issued sovereign sukuk in the current fiscal year. The story was updated on 6 June 2024 to delete this mention.
HAPPENING TODAY-
Export subsidy payouts begin: The Finance Ministry will begin disbursing the first batch of export subsidies under the seventh phase of the program today, according to a statement. Some 360 exporters will start receiving some EGP 10 bn in export subsidies during this phase — the second and third batches are scheduled for 27 June and 8 August.
DATA POINTS-
#1- Remittances from Egyptians abroad surged 43.8% y-o-y in April to USD 2.2 bn, a central bank source told Youm7. On a monthly basis, remittances increased for the second consecutive month, rising 2.6%.
Remember: Egyptians abroad have started sending more of their remittances through official channels after the float of the EGP. Remittance inflows saw a major dip over the past year or so as Egyptians abroad either held onto their money or sent it back through parallel mechanisms — remittances were down 30% y-o-y in 2023. The government said it wants to raise remittances — one of Egypt’s biggest sources of FX — from Egyptian expats by 10% each year to reach USD 53 bn by 2030.
#2- Egyptian companies came in third in a list of new non-Emirati companiesjoining the Dubai Chamber of Commerce, with 1.4k Egyptian companies joining the chamber during the first quarter of the year. Indian businesses topped the list with 4.4k new members and they were followed by Pakistan companies.
PSA-
WEATHER- It’s another hot day in Cairo, with a high of 41°C and a low of 27°C, according to our favorite weather app.
It’s a little cooler in Alexandria, with a high of 32°C and a low of 22°C.
And over the weekend, expect to see highs of 41°C and lows of 24°C in the capital.
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CIRCLE YOUR CALENDAR-
All aboard for 2027: The first phase of the Cairo Metro Line 4 will open in 2027, National Tunnels Authority chairman Tarek Gewaily told Asharq Business. The 19-km first stage of the line will have 17 stations and connect Cairo, Giza, and the outskirts of Sixth of October, and provide access to the Grand Egyptian Museum. The second phase of the project will extend the line all the way to New Cairo.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
THE BIG STORY ABROAD-
US chipmaker Nvidia passed Apple in market cap yesterday, becoming the world’s second-most valuable public company behind Microsoft with a market capitalization of USD 3 tn. The company’s shares rose over 5% yesterday to close at a record USD 1,224.40 each triggered by the artificial intelligence boom. (CNN | Reuters | Bloomberg | CNBC)
Number one next? “It may be a foregone conclusion that Nvidia will overtake Microsoft as well. There's a lot of retail [investor] money that's piling in on what they see as a straight shot up,” Longbow Asset Management CEO Jake Dollarhide said, adding that “Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI.”
DATA POINT- This makes Nvidia the third company in the US to cross the USD 3 tn mark, after Apple and Microsoft.
Nvidia’s gains pushed S&P 500 to a fresh high, with the index rising 1.18% to close at 5,354 — it has gained 12.3% since the beginning of the year.
AND- Canada has become the first G7 country to cut rates: The Bank of Canada (BoC) cut its interest rate by 25 bps yesterday, pushing rates to 4.75% after almost a year of holding them at 5%. The move makes Canada the first G7 member to slash rates.
In perspective: Canada’s decision to cut rates contrasts with the US Federal Reserve, which is widely expected to cut rates once this year, thanks to “stickier” inflation. “There are limits to how far we can diverge from the United States, but we're not close to those limits,” BoC Governor Tiff Macklem said. (FT | Reuters | Bloomberg | Wall Street Journal | Globe and Mail)
The European Central Bank could follow suit today when it meets to review rates — see this morning’s Planet Finance, below. The Central Bank of Egypt doesn’t meet until 18 July.
AND YOUR DAILY DOSE OF ELECTION COVERAGE- The AP takes note of the dissatisfaction among voters as we approach the halfway point of one particularly election-heavy year.
IN CLIMATE NEWS- The Associated Press lists all the climate records that have been broken recently and ask the question: How worried should we be?




