{"id":582063,"date":"2023-02-24T00:00:00","date_gmt":"2023-02-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/24\/more-privatization-news-our-maiden-sovereign-sukuk-issuance-is-out-the-door\/"},"modified":"2023-02-24T00:00:00","modified_gmt":"2023-02-24T00:00:00","slug":"more-privatization-news-our-maiden-sovereign-sukuk-issuance-is-out-the-door","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/24\/more-privatization-news-our-maiden-sovereign-sukuk-issuance-is-out-the-door\/","title":{"rendered":"More privatization news + our maiden sovereign sukuk issuance is out the door"},"content":{"rendered":"

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Good morning, lovely people, and happy Friday to you all. <\/span>It\u2019s been a busy week for all of <\/span>us at the Enterprise HQ, so we greet you this weekend with big TGIF energy and a light, fun Weekend Edition issue to cleanse our collective palates. <\/span> <\/span><\/p>\n

Enterprise Weekend comes out each Friday at 9:00am CLT.<\/span> We\u2019ll be back on Sunday at 6am <\/span>with EnterpriseAM. Until then: Enjoy the weekend.<\/span><\/p>\n

LAST WEEK IN 3 MINS-<\/span><\/p>\n

IT WAS A BUSY WEEK ON ALL FRONTS, <\/span>with plenty of updates on the state\u2019s rebooted <\/span>privatization program, our maiden sovereign sukuk issuance, and a slew of investment and M&A news. <\/span><\/p>\n

THE AWARD FOR THE TWO BIGGEST STORIES OF THE WEEK GOES TO\u2026 <\/span><\/p>\n

<\/span> #1- Our maiden USD 1.5 bn sovereign sukuk issuance <\/span>closed<\/a><\/span> <\/span>c.4x <\/span>oversubscribed<\/span> \u2014 a great indicator of <\/span>foreign investors\u2019 outlook on Egypt. The offering drew significant demand from across Europe, Asia and North America as well as the GCC, including from new investors to Egypt. The issuance is the first in a three-year, USD 5 bn sukuk program.<\/span><\/p>\n

#2- For the third week running, it\u2019s all privatization, all the time: <\/span>It started with news that t<\/span>he <\/span>government <\/span>wants to sell sizable minority stakes<\/a><\/span> in state-owned <\/span>Chemical Industries Development Company<\/span> and <\/span>Misr Pharma<\/span> to investors in the coming six months, likely in an IPO on the EGX. Later, we learned that <\/span>Italy\u2019s <\/span>Intesa Sanpaolo<\/span> is <\/span>in talks<\/a><\/span> <\/span>with the government <\/span>to acquire the remaining <\/span>20%<\/span> of the <\/span>Bank of Alexandria (Alexbank)<\/span> it doesn\u2019t own. The government also said it will offer a <\/span>20% stake<\/span> in its new <\/span>hotels company<\/a><\/span> to strategic investors, followed by an offering of 5% on the bourse, while Misr Life Ins. stake sale is said to be likely to go ahead by the end of 1H 2023. There was also an update on Saudi sovereign wealth fund\u2019s takeover of<\/span> United Bank<\/span>: The <\/span>Public Investment Fund (PIF)<\/span> <\/span>has reportedly hit \u2018pause\u2019<\/a><\/span> on talks for the acquisition due to a dispute over its valuation following the devaluation of the EGP, which has lost almost half its value over the past year.<\/span><\/p>\n

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ON THE M&A FRONT-<\/span> Saudi dairy producer <\/span>Almarai <\/span>has bought<\/a><\/span> PepsiCo\u2019s entire <\/span>48%<\/span> stake in <\/span>the parent company of juice and dairy producer <\/span>Beyti <\/span>for SAR 255 mn (c. USD 68 mn), handing it full ownership of the company. <\/span>Two unnamed British and French investment funds<\/span> are also seeking an acquisition of a<\/span> 20%<\/span> stake in <\/span>Marcyrl Pharma<\/a><\/span>, with<\/span> the British fund eyeing a 15% stake, and the French eyeing the remaining 5%. <\/span><\/p>\n

MEANWHILE- <\/span>The<\/span> Sovereign Fund of Egypt\u2019s (SFE)<\/span> health and pharma sub-fund is <\/span>reportedly eyeing a minority stake in pharma giant <\/span>El Ezaby Pharmacy<\/span> in partnership with an unnamed investment firm, while shareholders of tourism developer <\/span>Remco<\/span> <\/span>agreed to sell 100% of the <\/span>Stella di Mare Beach Hotel<\/span> in Sharm El Sheikh to military-owned <\/span>Tolip Hotels and Resorts<\/span> for EGP 700 mn.<\/span><\/p>\n

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AUTOMOTIVE + EV INVESTMENTS ARE ALL THE RAGE:<\/span> <\/span>Stellantis<\/span>, <\/span>Nissan <\/span>and <\/span>Al <\/span>Mansour Automotive<\/span> <\/span>could invest<\/a><\/span> a total of <\/span>USD 145 mn<\/span> in the nation\u2019s auto industry over the next three years under individual framework agreements signed with the government earlier this month. Meanwhile, Croatian electrical equipment manufacturer <\/span>Koncar<\/a><\/span> <\/span>could establish<\/a><\/span> a factory for manufacturing EV chargers and manufacture electrical components for power transmission infrastructure in Egypt with the help of local Saudi contractor <\/span>Al Massa Group<\/a><\/span>. On the outbound investment side, <\/span>Vortex Energy<\/span> \u2014 the clean energy investment platform from our friends at EFG Hermes Holding \u2014 and London-based private equity and infrastructure fund manager Zouk Capital said they will make an <\/span>USD 80 mn equity investment<\/a><\/span> in British EV charging outfit <\/span>EO Charging<\/span>. <\/span><\/p>\n

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ON THE MACRO SIDE OF THINGS- The EGP slipped 5 piasters against the greenback,<\/span> <\/span>with the USD changing hands at <\/span>30.68 from 30.63<\/span> at the start of the week. The currency hit the 30 mark at the end of January following a sharper devaluation and has lost nearly half its value against the greenback over the past year amid the fallout from the war in Ukraine and rising interest rates.<\/span><\/p>\n

<\/span> AND ICYMI- The <\/span>Enterprise Reader Survey<\/a><\/span> results are out. <\/span>Spoiler alert: T<\/span>he <\/span>consensus among Enterprise readers is that 2022 was not a great year for business \u2014 and there\u2019s plenty of uncertainty about what to expect in the coming months. And for the first time in forever, most respondents are uncertain whether they\u2019ll do better than their competition this year. <\/span><\/p>\n

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WHAT\u2019S HAPPENING NEXT WEEK-<\/span><\/p>\n

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The House of Representatives will reconvene on Monday to give final sign to on a few <\/span>things on its plate from last week:<\/span> <\/span><\/p>\n

#1- A two-month extension to the government\u2019s expat car-for-FX scheme<\/span>, which cabinet <\/span>approved last week, will head to the House for a final discussion and vote on Monday, as we reported <\/span>earlier this week<\/a><\/span>. Among the issues up for debate: MPs have yet to agree on a response to a proposal to grant Egyptians living in the Gulf 50% off of taxes and customs.<\/span><\/p>\n

#2- A government-drafted bill that would allow unlicensed industrial projects to obtain <\/span>temporary licenses<\/span> will also be up for a final discussion and vote on Monday. The House Industry Committee had approved the bill last week in a bid to provide temporary relief to the informal businesses. <\/span><\/p>\n

? YOUR MOST CLICKED LINKS (IN ORDER OF MOST CLICKED)-<\/span><\/p>\n