Hassan Allam wins contract for Mopco’s Damietta complex overhaul

Hassan Allam lands Mopco revamp contract

Hassan Allam Construction secured a contract to overhaul Mopco’s fertilizer complex in Damietta Freezone, taking over civil, mechanical, electrical, and instrumentation works for the facility, it said on LinkedIn. The project will involve revamping three existing urea plants to expand production capacity and build a new CO2 recovery unit.

Why it matters: This couldn’t have come at a better time. Global urea export prices skyrocketed up to USD 890 per ton in mid-March nearly double their pre-crisis baseline. While prices have dipped since then, Egyptian manufacturers are still well-positioned to help fill this massive global supply vacuum. Mopco's revamp and expansion will allow them to capture a larger slice of the export market and lock in hard currency windfalls.

Cooling the corridor

Algerian home appliances giant Condor is pouring an initial USD 25 mn into a new 15k sqm integrated air conditioning factory in Sixth of October City, Amwal Alghad reports, citing Commercial Director Ahmed Abdel Monem. The facility, slated for completion within three years, is designed to ramp up the company's local output to 100k units annually — capturing a targeted 5% share of Egypt’s 1.2 mn-unit market — while simultaneously serving as a launchpad for regional exports to Saudi Arabia and Sudan.

Why it matters: The Algerian firm — which currently manufactures Beko and Hisense air conditioning units for the local market — is using its access to Egypt's favorable trade agreements --- including lower tariffs and faster turnaround times--- to reach target markets like Saudi Arabia and Sudan. This means fresh FDI for us, an increase in localized manufacturing, and a stronger foothold in the Red Sea corridor as an industrial launchpad.

Bedaya closes securitization program

EFG Finance’s Bedaya Mortgage Finance completed an EGP 1.91 bn securitized bond issuance, according to a statement (pdf). The issuance --- which is the eighth since its inception and the sixth under its securitization program --- was structured across four tranches with tenors ranging from 13-81 months and credit ratings between AA and A-.

Advisors: Our friends EFG Hermes was sole financial advisor, issuance manager, bookrunner, underwriter, and arranger. NBE, Banque du Caire, CIB, SAIB, and ABK underwrote, with United Bank in the subscription. Banque du Caire was receiving bank, ADCB custodian, El Dereny & Partners counsel, Baker Tilly auditor.

The House greenlights JPY loan for Metro Line 4

The House of Representatives signed off on a JPY 100 bn (c.USD 630 mn) facility from the Japan International Cooperation Agency (JICA) to fund the fourth tranche — linking Sixth of October City to the Grand Egyptian Museum and the Pyramids — of Cairo Metro Line 4's first phase, according to a statement. The terms are concessional by any measure: 30-year tenor, 10-year grace period, and a 0.75% annual interest rate.