{"id":584676,"date":"2023-04-04T00:00:00","date_gmt":"2023-04-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/04\/this-morning-cib-launches-three-year-22-cd\/"},"modified":"2023-04-04T00:00:00","modified_gmt":"2023-04-04T00:00:00","slug":"this-morning-cib-launches-three-year-22-cd","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/04\/this-morning-cib-launches-three-year-22-cd\/","title":{"rendered":"THIS MORNING: CIB launches three-year, 22% CD"},"content":{"rendered":"

Good morning, wonderful people, and happy Tuesday. <\/span>It\u2019s another busy news day \u2014 and <\/span>we\u2019re just about ready to call time on the notion that there will be any form of Ramadan slowdown this year. Hope springs eternal, but\u2026<\/span><\/p>\n

THE BIG STORY here at home<\/span>is a major foreign direct investment in our pharma sector. <\/span>Our friends at Development Partners International (DPI) together with French private equity <\/span>outfit Amethis have acquired a \u201csignificant minority stake\u201d in <\/span>Mar<\/font>cyrl, a top 10 player in the domestic industry. In an exclusive interview, we spoke with <\/span>Mar<\/font>cyrl's George Messiha, DPI\u2019s Ziad Abaza, and Amethis partner Toufic Khoueiry on the thinking behind the transaction. <\/span><\/p>\n

More of this, please: <\/span>The transaction comes despite the ongoing FX crunch, signaling that two very well-regarded private equity investors have confidence not just in Mar<\/font>cyrl, but that they see the investment\u2019s potential returns will handily outweigh the FX exposure they\u2019re taking on. DPI and Amethis moving ahead with the transaction underscores the simple fact that Egyptian assets are very well priced if you\u2019re a private equity player or strategic with USD to deploy. <\/span><\/p>\n

Less of this, please:<\/span> Daylight saving time is back, friends. ?MPs approved the move in a vote yesterday.<\/span><\/p>\n

^^ We have the rundown on both stories and more <\/span>in this morning\u2019s news well, below. <\/span><\/p>\n

HAPPENING TODAY-<\/span><\/p>\n

<\/a><\/span> It\u2019s PMI day:<\/span> S&P Global will release Egypt PMI figures for March <\/span>here at about<\/a><\/span>6:15am CLT<\/a><\/span>, just after we hit \u201csend\u201d on this morning\u2019s issue. Activity in Egypt\u2019s non-oil private sector <\/span>contracted<\/a><\/span> for the 27th <\/span>consecutive month in February, albeit at a slower pace than the month before. <\/span><\/p>\n

** SO, WHEN DO WE EAT? <\/span>We\u2019ll be breaking our fasts at 6:15p<\/span>m CLT today. You have until 4:12am tomorrow morning to hydrate and grab <\/span>a bite to ea<\/span>t.<\/span><\/p>\n

HAPPENING THIS WEEK-<\/span><\/p>\n

The World Bank will release its latest MENA Economic Update on Thursday: <\/span>Ominous<\/span>ly titled \u201cAltered Destinies,\u201d the multilateral lender\u2019s latest <\/span>regional growth report<\/a><\/span> will look \u201cin depth at how even temporary increases in the price of food can have lasting impacts across generations in terms of education, health and future income prospects.\u201d The World Bank downgraded its economic growth forecast for Egypt in the current fiscal year by 0.2 percentage points to 4.8% in its <\/span>most recent update<\/a><\/span> in October.<\/span><\/p>\n

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<\/a><\/span>CIB followed the Big Two in launching new CDs (for very big deposits):<\/span>EGX-bellwether CIB has launched new three-year certificates of deposit with a fixed 22% interest rate, according to its <\/span>website<\/a><\/span>. Interest on the certificates is paid monthly and the minimum deposit is EGP 3 mn. <\/span><\/p>\n

This came a day after Banque Misr and the National Bank of Egypt brought to market <\/span>two<\/a><\/span>new three-year CDs<\/a><\/span>:<\/span> one with a fixed 19% rate and another with a declining-rate falling from 22% to 16% by the third year. <\/span>The NBE and Banque Misr CDs have a minimum deposit of EGP 1k. <\/span><\/p>\n

WATCH THESE SPACES-<\/span><\/p>\n

<\/a> <\/span>#1- A separate USD exchange rate for taxes? <\/span>The Tax <\/span>Authority is working on a decision to set its own USD exchange rate \u2014 separate from the official exchange rate set by the central bank \u2014 to facilitate tax calculations for companies that calculate their earnings in USD, authority head Mokhtar Tawfik said yesterday, according to a <\/span>statement<\/a><\/span>(pdf<\/a><\/span>). <\/span>PSA- The filing deadline for corporate tax returns is the end of April. <\/span><\/p>\n

<\/a> <\/span>#2- More Saudi investment in renewables? <\/span>Three unnamed <\/span>Saudi companies have reportedly submitted requests to invest up to USD 1.5 bn in renewables and green hydrogen projects here, <\/span>Al Borsa<\/a><\/span> reports, citing people it says have knowledge of the matter. <\/span><\/p>\n

#3- We\u2019ll soon know more about the <\/span>new export subsidy<\/a><\/span>program<\/a><\/span>: <\/span>The details of the new export subsidy program will be announced \u201cwithin days,\u201d sources reportedly told <\/span>Al Borsa<\/a><\/span>. <\/span><\/p>\n

REMEMBER- <\/span>The Madbouly government is increasing <\/span>its spending<\/a><\/span> on export subsidies to EGP 28-30 bn in FY 2023-2024, when it will introduce the new program. The fifth phase of the existing program wrapped in December, bringing the total the government has paid out in subsidy arrears to exporters to EGP 42.5 bn. <\/span><\/p>\n

#4- No offers yet for Elsewedy Electric:<\/span> Elsewedy Electric is yet to receive any official <\/span>offers for a stake purchase, it <\/span>said (pdf)<\/a><\/span>yesterday, in response to local media reports that a <\/span>Gulf sovereign fund and Chinese firm are eyeing<\/a><\/span> a minority stake in the company. Elsewedy Electric is majority owned by members of the Elsewedy family, with the remainder in freefloat.<\/span><\/p>\n

A call to new fund <\/span>managers: GIZ Egypt, AfricaGrow and Dutch development bank FMO <\/span>have opened applications for their 2023 program to boost VC funds. <\/span>The VC Grow program will invite 20 new and emerging fund managers in the MEA region to a Cairo bootcamp before choosing five to join its accelerator, according to a <\/span>statement (pdf)<\/a><\/span>. The six-month program offers fundraising support, introductions to potential partners and investors, and workshops, and culminates in a regional summit. <\/span>To be eligible to apply, funds must have a minimum 25% allocation to Egypt, investing equity or venture debt between the seed to Series A stages. <\/span>Apply here<\/a><\/span> before the 1 May deadline. <\/span><\/p>\n

THE BIG STORY ABROAD-<\/span><\/p>\n

The front pages of the international press are all about the Donald this morning. <\/span>Former US President Donald Trump landed in New York last night to face charges relating to hush money payments to an adult film star to keep quiet about an alleged affair. Trump will surrender at the Manhattan district attorney today before appearing before a judge to enter his plea. New York authorities are readying for potential protests in the city by Trump supporters. (<\/span>FT<\/a><\/span> | <\/span>Reuters<\/a><\/span>| <\/span>New York Times<\/a><\/span> | <\/span>AP<\/a><\/span>| <\/span>CNBC<\/a><\/span>| <\/span>CNN<\/a><\/span>) <\/span><\/p>\n

The business press is still leading with the fallout of OPEC\u2019s shock production cu<\/span>ts on Sunday. <\/span>We have the full rundown in this morning\u2019s Planet Finance. <\/span><\/p>\n

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<\/a> <\/span>FINALLY- People are getting their acts together to try and stop an eminently <\/span>preventa<\/span>ble environmental catastrophe from occurring in the Red Sea:<\/span> The UN Development Programme has bought a ship to unload 1.1 mn barrels of crude from a decaying container ship that has been stranded off the Yemeni coast for the past eight years, <\/span>Bloomberg<\/a><\/span> reports. <\/span><\/p>\n

Exxon Valdez x4:<\/span> The FSO Safer supertanker is holding four times the amount of oil spilled by <\/span>the Exxon Valdez in 1989, according to <\/span>the UN<\/a><\/span>. The ship has been gradually deteriorating since <\/span>2015, prompting <\/span>experts to warn<\/a><\/span> that it will only be a matter of time before the hull breaks apart and devastates the Red Sea\u2019s marine life. A spill here would make the FSO Safer the fifth-largest in history.<\/span><\/p>\n

What\u2019s with the hold-up?<\/span> The ship\u2019s future has been the subject of negotiations between the <\/span>Yemeni government and the Houthi rebel group, which seized it in 2015 after the outbreak of the country\u2019s civil war. It was only in 2022 that the Houthis <\/span>agreed to a UN proposal<\/a><\/span> to unload the ship, enabling the UN to raise money from donors and prepare for the operation. <\/span><\/p>\n

CIRCLE YOUR CALENDAR-<\/span><\/p>\n

It\u2019s a brand new month.<\/span> Here are some economic indicators to look out for<\/span>:<\/span><\/p>\n