{"id":607228,"date":"2023-09-28T00:00:00","date_gmt":"2023-09-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/28\/elections-start-in-december-of-this-year-we-had-several-debt-transactions-in-several-industries\/"},"modified":"2023-09-28T00:00:00","modified_gmt":"2023-09-28T00:00:00","slug":"elections-start-in-december-of-this-year-we-had-several-debt-transactions-in-several-industries","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/28\/elections-start-in-december-of-this-year-we-had-several-debt-transactions-in-several-industries\/","title":{"rendered":"Elections start in December of this year + We had several debt transactions in several industries"},"content":{"rendered":"

Good morning, wonderful people, and welcome to the first of two consecutive long <\/strong> weekends. <\/strong>We\u2019re preparing to bid September farewell and welcome October, which \u2014 among other things \u2014 means the weather is looking ready to cool down.<\/p>\n

That fall weather makes it the time to get out of the house and plan some outdoor <\/strong> activities and trips. <\/strong> But it doesn\u2019t have to be an elaborate affair \u2014 one-day trips and excursions are very much within reach. This week, we bring you a rundown on farms that are close enough to the capital to be feasible for a brief trip there and back, where you (and your kids, however old they may be) can get a break from city life. <\/p>\n

PSA #1- Public schools and universities are back in session as of this Saturday<\/strong>, meaning your morning commutes are going to get a little bit longer. Be sure to leave for work a little earlier next week to account for the extra traffic.<\/p>\n

PSA #2- Summer retail hours are out. Winter hours are in. <\/strong> Shops and malls are closing an hour earlier at 10pm on Saturday through Wednesday (11pm on Thursdays, Fridays, and national holidays) now that winter trading hours came into effect as of yesterday. Cafes and restaurants now close at midnight. The government first introduced seasonal retail opening hours in 2020.<\/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><\/p>\n

It was an abridged week, but there was no shortage of big news throughout the past four days. <\/strong><\/p>\n

ELEX 2023- <\/strong><\/p>\n

The update we\u2019ve all had our eyes on: We\u2019re heading to the polls in December. <\/strong> Voting in the next presidential elections will start as early as 1 December, beginning with Egyptian expats, followed by voters here at home, the National Elections Authority (NEA) said at a presser earlier this week<\/a>. We could have an outcome as early as 18 December, or as late as 16 January if a run-off vote is necessary. <\/p>\n

IN CONTEXT- <\/strong> The elections are a complicating factor in the government\u2019s approach to critical matters on the economic front, including a potential fresh currency devaluation. Which brings us to\u2026<\/p>\n

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

We\u2019re in the IMF\u2019s good graces with progress on the state privatization program: <\/strong> The IMF is seeing positive signs from the government that we\u2019re serious about its ambitions to sell down state assets, with the Fund responding positively to a number of recent agreements with Gulf and local investors, Bloomberg\u2019s Mirette Magdy reported<\/a>. The change in sentiment could ease the path towards the all-important review of our USD 3 bn loan program, after the IMF postponed the first and second reviews of the reform program (originally scheduled for March and September) in response to us falling short of complying with key conditions of the loan, including an acceleration of the government\u2019s privatization plans as well as properly floating the EGP.<\/p>\n

WE ALSO HAD SOME IMPORTANT CAPITAL MARKETS TIDBITS- <\/strong><\/p>\n

#1- Egypt is <\/strong>being put on review<\/a><\/strong> for potential removal from JPMorgan\u2019s widely-tracked <\/strong> suite of emerging-market sovereign bond indexes <\/strong> because investors are facing \u201cmaterial\u201d hurdles repatriating currency from local bonds. The US bank will review Egypt\u2019s eligibility for its Government Bond Index-Emerging Markets (GBI-EM) series over the next three to six months, with the country\u2019s sovereign bonds remaining in the index during the review period.<\/p>\n

#2- The secondary t-bill market is changing: <\/strong> The Egyptian Central Securities Depository (ECSD) \u2014 the government\u2019s arm for the depository, settlement, and clearing of sovereign debt \u2014 has taken on the responsibility for managing the secondary market for t-bills, allowing them to be traded on the EGX. The Central Bank of Egypt had previously administered the secondary market for t-bills and was responsible for clearing and settling trades. The move aims to make the secondary market for t-bills more accessible to investors, boosting trading volumes and lowering yields.<\/p>\n

THERE WAS A SLEW OF DEBT TRANSACTIONS- <\/strong><\/p>\n

#1- EFG Corp-Solutions <\/strong>closed an EGP 1.01 bn<\/a><\/strong> securitized bond issuance<\/strong>, marking the third issuance in the leasing and factoring firm\u2019s ongoing securitization program. <\/p>\n

#2- Halan, the consumer finance subsidiary of MNT-Halan, <\/strong>issued EGP 1.04 bn worth of<\/a><\/strong>securitized bonds<\/a><\/strong> . <\/strong> The issuance featured four tranches rated P1 and A, and was reportedly 1.5x oversubscribed. Buyers included major banks and investment funds. <\/p>\n

#3- Real estate investor Rawasi Urban Development <\/strong>closed a EGP 789 mn securitized<\/a><\/strong>bond<\/a><\/strong>issuance<\/a>, backed by a EGP 1.3 bn portfolio of leasing receivables. The issuance was sold in three tranches rated P1, AA, and A. <\/p>\n

#4- Kandil Steel is borrowing from the IFC amid industry headwinds: <\/strong> The International Finance Corporation (IFC) signed off on a USD 25 mn loan<\/a> to Kandil Steel, with the funding set to be used to \u201csupport the company\u2019s operational and financial resilience\u201d by funding working capital and enabling it to continue purchasing raw materials. Kandil\u2019s working capital requirements have risen on the back of rising raw material costs and reduced access to USD. <\/p>\n

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

We had one new bid round launching\u2026 <\/strong>International energy companies are being invited to<\/a> search<\/a> for new oil and gas fields in Egypt as the Madbouly government looks to reverse declining production and draw new investment into the sector. Companies have until 25 February 2024 to submit offers. The ministry is offering 10 blocks in the Western Desert, seven in the Gulf of Suez, four in the Red Sea, and two in the Eastern Desert. Thirteen of the zones are under the control of Ganope and the other 10 are managed by EGPC. Firms can bid for exploration licenses of up to seven years and will be granted 20-year extendable development leases if they make a discovery<\/p>\n

\u2026and another one ending: <\/strong> Four international oil and gas firms were awarded exploration<\/a> concessions<\/a> via the bid round launched by the state-owned Egyptian Natural Gas Holding Company. Eni will receive two concessions in the Mediterranean; a consortium of Eni, BP, and Qatar Energy will receive one concession in the Mediterranean; and Russia\u2019s Zarubezhneft will receive one in the Nile Delta. The total signing bonus on the four assets amounts to USD 7.5 mn, while the minimum investment in the exploration periods for each concession is set at USD 281 mn. <\/p>\n

PLUS: RECAPPING THE ENTERPRISE FINANCE FORUM- <\/strong><\/p>\n

#1- The seven themes keeping the finance industry up at night: <\/strong> We identified seven themes while preparing our first Enterprise Finance Forum \u2014 themes that set the tone for us all every workday and every quarter of 2023. Most of those themes look set to persist well into 2024. It\u2019s simple really, we\u2019ve never gathered as a community at a time that is so simultaneously challenging and replete with avenues through which to grow our businesses.<\/p>\n

#2- Good luck raising money these days. <\/strong> The era of cheap money has given way to a high-interest-rate environment both globally and at home, making it difficult for venture capital funds to raise money and harder still for startups to tap VCs. The FX crunch, meanwhile, has strategics and private equity players alike looking to keep their dry powder \u2026 dry. Who wants to invest today if they think it likely they will tell their investment committee one later that they\u2019re going to have to take a charge post devaluation?<\/p>\n

<\/p>\n

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

<\/p>\n

A new academic year begins: <\/strong> Egypt\u2019s public universities and schools are starting their new academic years this Saturday. <\/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