Good morning, friends. It’s another morning dominated by news of a big package from an international partner — this time, we secured a USD 6 bn financing package from the World Bank.

That means we’ve now lined up a total of USD 57 bn of finance. Some of that funding has already arrived (thank you, ADQ), some of it is a few weeks or months out, and much of it will trickle in over a period of years as we meet reform milestones or as investments reach financial close. The breakdown:

• A USD 8 bn program from the International Monetary Fund (we’re still not on the executive board’s public schedule)
• A EUR 7.4 bn (c. USD 8.05 bn) package of loans, grants and investments from the European Union
• ADQ’s USD 35 bn agreement for the development of Ras El Hekma (USD 24 bn for the development rights, plus USD 11 bn in a deposit at the CBE that it will convert and invest in real estate and other sectors)
• And now USD 6 bn from the World Bank, which we break down in this morning’s news well, below.

SPEAKING OF OUR EU PACKAGE- The bloc will disburse some EUR 1 bn worth of concessional loans in the short term, Egypt’s ambassador to the EU Badr Abdelatty told Asharq Business (watch, runtime: 12:15). The remaining EUR 4 bn will be extended in tranches starting the end of this year, he added.

ICYMI- As part of its package, the EU is extending EUR 5 bn worth of concessional loans to Egypt.

Favorable terms: The soft loans will come with interest rates of no more than 3% and will be paid over no less than 20 years, Abdelatty said, adding that Egypt isn’t required to meet any conditions to unlock the facility, he said.

We know where the EUR 1.8 bn of “additional” investments earmarked by the EU will go: The EUR 1.8 bn will be used as investment guarantees for European investors in local projects to stimulate investment in a few priority sectors, he said, naming renewable energy, industry, agriculture, logistics, and the digital transition, he said.

FX WATCH-

Foreign currency inflows at the state’s FX bureaus continue to grow: Customers have sold over EGP 3 bn worth of foreign currency at the National Bank of Egypt’s foreign currency exchange bureau Al Ahly Exchange and Banque Misr’s Misr Exchange, Al Borsa reported yesterday. Transactions at the bureaus were mostly USD sales, with SAR and EUR accounting for a smaller portion of the transactions.

MEANWHILE- The EGP continued to appreciate against the USD amid signs that folks are de-dollarizing. The greenback was changing hands in banks yesterday at EGP 47.10 to EGP 47.39 in banks.

DEBT-

Barclays has recommended Egypt’s USD bonds in anticipation of a potential rating upgrade on the back of “recent developments and reform momentum,” Bloomberg reports. “Markets are taking note and are rewarding positive idiosyncratic developments with outperformance,” Barclays strategists said in a note cited by the outlet.

But Deutsche Bank has taken an interest in our EGP debt: “Despite the slightly rich valuation in our static fair value model, longer t-bills and short-end bonds offer attractive yield levels from a structural perspective and most importantly an attractive pickup over NDFs,” Deutsche Bank strategists wrote.

Investors have been loving Egyptian debt post float: Foreign investors have poured over USD 3 bn into Egypt since the central bank floated the EGP and announced a jumbo 600 bps rate hike two weeks ago. The number is expected to jump to USD 30 bn before the end of the year. EGP t-bills have been getting all the love, while local currency t-bonds were met with less demand.

EGX WATCH-

The EGX30 was down 6.3% at yesterday’s close amid a sell-off from local institutional investors, according to market data. Abu Qir Fertilizers was the only EGX30 constituent to close in the green yesterday. The index is up 16.9% year-to-date.

Chalk it up to profit-taking as investors digest the fact that the EGP is appreciating against the greenback. While equities are still very well-priced in USD terms, many of those who have piled into the EGX before the Ras El Hekma and IMF announcements did so while imagining a world in which the EGP was going to be changing hands for the greenback at EGP 60 and above.

It’s been a pretty wild ride for the EGX30 after the float: The country’s benchmark index fell 3.0% on the day the central bank floated the EGP as investors who had bought into equities as a hedge against a weakening EGP decided to take their earnings, Egyptian Capital Market Association chairman Mohamed Maher told Enterprise. Immediately after, the index shot up 12.2% over the next three days and has now dropped almost 11% over the last five days of trading.

PSA-

PSA #1- Another chance for Egyptians living abroad to settle their outstanding military service: For two months starting 1 May, the Immigration Ministry will reopen the door for Egyptians living abroad to settle unfulfilled military service obligations, according to a ministry readout. It’s unclear if the settlement cost has changed from the first iteration of the initiative, but last time round it cost USD 5k / EUR 5k.

PSA #2- So, when do we eat? Maghrib prayers are at 6:06 pm in the capital city, and you’ll have until 4:32 am tomorrow to hydrate and caffeinate ahead of fajr.

CYBERSECURITY-

LockBit releases what it claims is El Ezaby data: Ransomware gang LockBit hasreleased what it claims is 64 GB of data stolen from pharma chain El Ezaby Pharmacy after El Ezaby failed to meet ransom demands before the deadline. The data allegedly includes customers’ data, financial data, passwords, and email archives.

Sound familiar? Last year saw reports alleging that two Egyptian blue chip companies were hacked by LockBit, compromising personal and financial data. The hacks suggest that LockBit has turned its sights on Egypt and other emerging markets — likely banking on companies here taking a less-sophisticated approach to cybersecurity.

What can companies do to protect themselves? We had a Hardhat vertical all about what’s stopping Egypt’s business sector from adopting cybersecurity policies.

WATCH THIS SPACE-

Sugar export ban extended (again): The Trade Ministry has extended for three months its ban on the export of sugar. The ban, which runs through June 2024, exempts surplus quantities beyond local market needs and this marks its second extension since December.

Filling Egypt’s sugar fix: The government is working with the Central Bank of Egypt to secure the FX needed to import 1 mn tons of sugar in order to fill the needs of the domestic market, Prime Minister Moustafa Madbouly said during a meeting yesterday.

HAPPENING NEXT WEEK-

EDA to discuss price controls on pharma products: The Egyptian Drug Authority (EDA) will hold a meeting next Tuesday to discuss the pharma pricing scheme following the central bank’s decision to float the EGP, head of the Federation of Egyptian Chambers of Commerce’s meds division Ali Auf told Enterprise. The pharma sector has been suffering on the back of the mandatory pricing scheme the government has set for certain meds and pharma products — drug prices have not been able to change in reflection of exchange rate fluctuations, Auf explained.

The pharma sector wants to hike prices by 38%, which will reflect the USD / EGP exchange rate moving from 31 pre float to close to 50 post float, Auf said.

WAR WATCH-

Egypt urges the US to do more: The US should make clear to Israel what the consequences of a military push on Rafah would be, Foreign Minister Sameh Shoukry said during a presser (watch, runtime: 25:16) with UNRWA chief Philippe Lazzarini in Cairo. “It is not enough for rhetoric, it is not enough to state opposition,” Shoukry said.

An attack on Rafah seems imminent: In recent days Israel has doubled down on its intentions to attack Rafah — one of the world’s most densely populated places that is home to nearly 1.5 mn displaced Palestinians — despite the plans being denounced widely by the international community.

THE BIG STORY ABROAD-

Benjamin Netanyahu is sending a team to Washington after Joe Biden on Monday said that an assault on Rafah “would be a mistake.” The Israeli delegation will arrive in DC “with alternative plans for the next stage of its offensive against Hamas in Gaza.”

The story leads global front pages this morning, along with a global food monitor’s stark warning that mass death due to starvation is now imminent in Gaza “without an immediate ceasefire and surge of food to areas cut off by fighting. See: Financial Times | Reuters.

AND- Donald Trump can’t get a bond to cover the USD 454 mn civil-fraud judgment against him, the Wall Street Journal reports. “

Also worth knowing about this morning: The FT wonders whether UBS can “becomeEurope’s Morgan Stanley”, another key exec is “joining an exodus of top female talent” from Goldman Sachs.

MEANWHILE- Tensions are again boiling between Algeria and Morocco, which cut off diplomatic relations back in 2021. Bloomberg has a good backgrounder if you want to get up to speed.

FINALLY- An internet outage affecting West Africa could take up to five weeks to resolve as crews scramble to repair a damaged undersea cable, Semafor reports. Among those impacted: Nigeria, Ghana, Senegal and Côte d’Ivoire, where websites and online banking portals are down.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We dive into Egypt’s newly launched solar energy platform and how it can increase the share of renewables in the country’s energy mix.