Good afternoon, friends, and happy hump day. The news cycle seems to be winding down for the week after a busy start.

THE BIG STORY TODAY-

The government gave the International Finance Corporation (IFC) the greenlight to resume its EGP-denominated bond program plan, a government source told EnterpriseAM. Under the proposed plan, the World Bank’s private sector-focused arm will list the bonds on the EGX, before taking the proceeds and lending them out to Egyptian private sector companies.

The IFC is expected to issue up to EGP 100 bn worth of financial instruments in the first phase — equivalent to USD 2.1 bn at today’s exchange rate — with the initial issuance likely to take place before the end of 2025 or in 1Q 2026, the source said.

The program is all about the IFC acting as a market catalyst, helping persuade otherwise hesitant local investors to mobilize their capital and channel it to local companies. The IFC’s triple A rating can bring in large local players with plentiful EGP liquidity — think pension funds and ins. companies — that are only really interested in long-term and, importantly, safe assets. Via the IFC as essentially a mediator and guarantor, these funds originating from local investors can be made available to local companies — especially those that have difficulty acquiring traditional financing.

It also protects local companies looking to borrow from the risk of currency mismatch, as the IFC will on-lend EGP-denominated loans. Private sector borrowers often have to borrow in USD, meaning that future swings in the exchange rate lead to a lot of uncertainty that makes financial planning hard, an unpredictable liability that can scare away investors, and in the worst case scenario: bankruptcy. IFC-led loans also help in setting a reasonable pricing benchmark for others in the market to follow.

Issuing EGP-denominated bonds outside of Egypt could also be part of the plan, with a proposal from the IFC to expand the program to foreign markets getting the green light from the Finance Ministry, our source told us. Unlike the planned local issuance, foreign investors would pay in hardcash, allowing the IFC to bring in FX into the country to fund lending in Egypt.

THE BIG STORY ABROAD-

It’s a relatively calmer day in the global press following the signing of the Gazapeace accord in Sharm El Sheikh, Egypt, with no single story dominating headlines.

US Secretary of the Treasury Scott Bessent accused China of deliberately attempting to harm the global economy, telling the Financial Times that “they want to pull everybody else down with them.” Bessent’s statement follows Beijing’s recent tightening of control over its rare earth materials exports — a move that pushed US President Donald Trump to threaten imposing an additional 100% tariff on imports from China, effective 1 November.

The rising tensions between the two countries raised concerns over a rekindled trade war. Following Trump’s suggestion that a scheduled meeting between him and Chinese President Xi Jinping later this month might be called off, Bessent said that the meeting is still expected to take place as planned, with “staff-level” discussions between the two countries taking place in Washington this week. Earlier today, China’s Commerce Ministry stated that the country remains open to talks. “If there is a fight, we will fight to the end,” the statement reads. (Guardian | Financial Times | Reuters | Politico | BBC)

MEANWHILE- Silver skyrockets alongside gold. The price of silver hit a record high of USD 53.6 per ounce earlier today amid the rising tensions between the US and China in what is being hailed as a “historic short squeeze.” Prices have surged some 75% since the start of the year as investors seek safe havens. The latest peak saw the precious metal surpass a previous peak set in January 1980. “Silver tends to follow gold upwards,” CEO of the Silver Institute Michael DiRienzo told CNN. (CNN | Financial Times | Telegraph | Bloomberg | Guardian)

CLOSER TO HOME- Just one day following the signing of the peace agreement ending the war in Gaza, the Israeli military opened fire after it allegedly spotted several individuals crossing the initial Israeli withdrawal line. “After multiple attempts to distance them, the suspects refused to comply, prompting troops to open fire to remove the threat,” a statement by the IDF on X reads. Six Palestinians were killed, local health authorities in Gaza said. (Reuters | Guardian | CNN)

☀️ TOMORROW’S WEATHER- We’re in for another mild day in Cairo, with the mercury set to peak at just 28°C before cooling down to 17°C, according to our favorite weather app.