{"id":590527,"date":"2023-07-20T00:00:00","date_gmt":"2023-07-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/20\/egypt-more-than-doubles-fdi-us-fed-rates-meeting-next-week\/"},"modified":"2023-07-20T00:00:00","modified_gmt":"2023-07-20T00:00:00","slug":"egypt-more-than-doubles-fdi-us-fed-rates-meeting-next-week","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/20\/egypt-more-than-doubles-fdi-us-fed-rates-meeting-next-week\/","title":{"rendered":"Egypt more than doubles FDI + US Fed rates meeting next week"},"content":{"rendered":"

Good morning dearest reader and happy THURSDAY. <\/strong> We are happy to be joining you on this long weekend \u2014 which is set to be our last one for the summer, until late September when we down tools for Prophet Muhammad\u2019s birthday. <\/p>\n

\u2600\ufe0f <\/strong> THE WEATHER THIS <\/strong> WEEKEND<\/strong> - Stay in Sahel, people: <\/strong> Our forecast today expects more heat, with the mercury hitting 39\u00b0C in the morning and cooling down to 26\u00b0C at night. We can expect the temperature to stay at 39\u00b0C and drop to a cooler 25\u00b0C tomorrow, while on Saturday, the temperatures will rise even further to 40\u00b0C and dip to 25\u00b0C at night, according to our favorite weather app. <\/p>\n

If you \u2014 like us \u2014 are dreading the<\/strong> hot weather but want to stay busy<\/strong>, how about spending the weekend literally under the sea? <\/p>\n

As one of the best scuba diving locations on the planet<\/strong>, one of Egypt\u2019s biggest attractions is its rich and diverse diving industry. Our Enterprise Guide for the week will have you covered with everything you need to know before getting started with diving in Egypt \u2014 from the certifications you\u2019ll need to the biggest and best training centers. <\/p>\n

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

LAST WEEK IN 3 MINS-<\/strong> Despite its brevity, this week was packed with news <\/strong> on the economy, M&A , and energy fronts, along with big updates from the manufacturing sector. <\/p>\n

THERE WAS A SINGLE STORY ON THE MACRO FRONT- <\/strong> Foreign direct investments more than doubled <\/strong> in 2022<\/a><\/strong> to USD 11.4 bn as a result of more cross-border M&A and an increase in greenfield projects, according to the latest UN World Investment Report (pdf)<\/a>. <\/p>\n

AND ON THE IPO FRONT- <\/strong> Second Qalaa Holdings IPO: <\/strong> Qalaa Holdings wants to take its<\/a> printing subsidiary public on our bourse<\/a>. T he company is close to complying with the EGX\u2019s listing requirements and will begin trading through a direct listing. T he company plans to submit its registration documents to the EGX and the Financial Regulatory Authority by October, and will then have six months to start trading. <\/p>\n

THERE WAS A LOT MORE M&A ACTIVITY-<\/strong> <\/p>\n

#1- Al Ahly Momkn is getting interest: <\/strong> Tana Africa, Lorax Capital Partners, and US-based Ultra Capital have been reportedly bidding<\/a> for a 25% stake in the state-owned e-payments company. . <\/p>\n

#2- Meanwhile, Maersk is mulling ownership of the Zafarana wind farm: <\/strong> Danish shipping giant Maersk has made an offer to the government to acquire the 545-MW Zafarana wind farm<\/a> for the purpose of using the energy created in its own green hydrogen projects. <\/p>\n

#3- Sidpec news resurfaced, too, as the merger with Ethydco is happening.<\/strong> Sidi Kerir Petrochemicals Company\u2019s (Sidpec) board has signed off on the company\u2019s all-share merger<\/a> with the Egyptian Ethylene and Derivatives Company (Ethydco), after approving Baker Tilly\u2019s company assertion. Sidpec, which currently owns 20% of Ethydco, has been in the process of acquiring the remaining shares in the company since last year<\/a>. The firm said that it plans to finalize the merger by the end 3Q 2023. <\/p>\n

#4-<\/strong> MTI joins with B Investments to invest in pharma sector:<\/strong> EGX-listed firm MM Group for<\/a> Industry and International Trade<\/a>(MTI) is set to acquire a 40% stake in B Investments subsidiary B Pharma for some EGP 205 mn. <\/p>\n

AND MORE ENERGY UPDATES-<\/strong> <\/p>\n

#1- ACWA \u2665\ufe0f Sohag: <\/strong> Renewable energy giant ACWA Power inked a land allocation agreement<\/a> with the Ministry of Electricity to establish a 10-GW wind farm, which is set to be one of the largest in the world. <\/p>\n

#2- GREGY, one of five proposed Egypt-Europe interconnectors being considered, is <\/strong> looking for a bankroller: <\/strong> Egypt is in discussions<\/a> with Greece on where they can get the funding to complete the 3-GW Egypt-Greece Interconnector . Among the options: a EUR 1.5 bn soft loan from the EU, funding from Greece in exchange for power at a reduced cost, or private sector in exchange for returns on the transmitted electricity The 3 GW link will stretch from Wadi El Natrun, across the Mediterranean and directly to mainland Greece. <\/p>\n

#3- SolarizEgypt <\/strong> is shopping for USD 40-50 mn in solar PV projects<\/a><\/strong> across our continent <\/strong> by the end of 2023<\/strong>, as part of their expansion plans that look to add 80 MW to their clean energy portfolio. <\/p>\n

CAPITAL MARKETS- <\/strong> <\/p>\n

Beltone wrapped up huge capital increase:<\/strong> Investors have subscribed<\/a> to 100% of<\/a> Beltone Financial\u2019s EGP 10 bn capital increase<\/a>, which sees global institutional investors taking stakes in the investment bank. The increase was 98% covered<\/a> during the first phase of subscription which ended last week. The remaining shares were bought during a second subscription phase, which closed on Wednesday. <\/p>\n

DEBT WATCH-<\/strong> <\/p>\n

#1- New Urban Communities Authority\u2019s (NUCA) <\/strong> EGP 15 bn securitized bond issuance<\/a><\/strong> is <\/strong> done and dusted.<\/strong> It is the largest securitization this year, thus far, and is the maiden issuance in a EGP 30 bn program. <\/p>\n

#2- IFC is <\/strong> doling out<\/a><\/strong> a five-year USD 50 mn shariah-compliant facility to ADIB. <\/strong> This Murabaha facility is slated for financing SMEs and to support their adoption of sustainable development-focused initiatives .<\/strong> <\/p>\n

#3- EFG Hermes closes EGP 472.5 mn securitized bond issuance for PHD:<\/strong> Real estate developer Palm Hills Development (PHD) has closed a EGP 472.5 mn securitized bond issuance. EFG Hermes acted as sole financial advisor, bookrunner, and underwriter on the sale. The three-tranche issuance carries tenors of 13, 36, and 84 months, rated AA+ through A by Middle East Rating & Investors Service. This issuance brings PHD\u2019s total issued securitized bonds to EGP 1.1 bn in 2023. <\/p>\n

MANUFACTURING-<\/strong> <\/p>\n

#1- French rail manufacturer Alstom <\/strong> plans to invest<\/a><\/strong> some EUR 300 mn in Egypt over the <\/strong> next three years <\/strong> to establish two factories in Borg El Arab to produce electrical systems and metro and monorail rolling stock. <\/p>\n

#2-<\/strong> More investment into the local fertilizer sector could be on the way:<\/strong> The General Authority for the Economic Zone of the Golden Triangle has received<\/a> three offers from local and international investors<\/a> to establish fertilizer complexes in the \u2018Golden Triangle\u2019 in Red Sea governorate. The three facilities would require a combined USD 1.6 bn of investment, he said. <\/p>\n

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

<\/p>\n

The National Dialogue returns: <\/strong> The National Dialogue will continue its sessions on Tuesday, 25 July. The dialogue kicked off in May, holding three weekly sessions discussing political, economic, and social issues. Sessions have been on pause since the Eid Al Adha break. <\/p>\n

The US Federal Reserve interest rate meeting on 25-26 July has the world biting its nails<\/strong> in anticipation of whether the FOMC intends to raise the rates, after keeping them steady for the first time in 15 months in their meeting in June<\/a>. Some 92% of industry experts predict that rates will rise by 25 bps, Forbes<\/a> reports, citing CME Group data . This comes as the Fed reports that the inflation rate has \u201ccooled\u201d and the road towards recession averted. <\/p>\n

Check out our full calendar on the web<\/a><\/strong> for a comprehensive listing of upcoming news events, national holidays and news triggers. <\/p>\n

YOUR MOST CLICKED LINKS-<\/strong> <\/p>\n