Subscribe to Egypt Claps
Elsewedy Electric rakes in over EGP 4 bn in Q1
Elsewedy Electric (SWDY) reported a modest 4.2 % year-on-year (YoY) uptick in net profit for the first quarter of 2025, bringing in over EGP 4.1 bn on the back of solid revenue growth, its latest earnings release showed. Its top-line totaled EGP 59.4 bn, marking a solid 31.3% YoY increase. |
Driving growth: 1) Wires, Cables & Accessories: The segment remained the key revenue driver, accounting for 61% of the top-line. Segment revenues reached EGP 36.1 bn, up 21.8% YoY. 2) Engineering & Construction (E&C) Projects: Contributing 26% to total revenues, the E&C segment saw revenues rise by 55.2% YoY to EGP 15.4 bn. This was driven by a growing portfolio of domestic and international projects. 3) Digital Solutions: Revenues increased 22.6% YoY to EGP 3.65 bn, driven by volume growth and effective pricing. 4) Electrical Products: This segment saw the highest revenue growth rate, surging 63.5% to EGP 3.54 bn. 5) Infrastructure Investment: Revenues grew 27.1% YoY to EGP 730 mn. Q1 milestones include: Sustained backlog momentum across major segments: EGP 241 bn for E&C, EGP 37 bn for Wires & Cables, EGP 24.5 bn for Transformers, and EGP 6.6 bn for Meters, which provide strong revenue visibility going forward. Elsewedy also announced its first major European investment, securing a contract to execute nearly half of Hungary’s largest combined-cycle power plant project, valued at EUR 700 mn. Additionally, it unveiled plans to build the Middle East’s first subsea cable factory at Damietta Port — a USD 500 mn export-focused facility aimed at bolstering its global cable manufacturing presence. Looking ahead: “Looking ahead, we remain committed to our ambitious three-year strategy, which centres on forging high-impact partnerships with industry leaders. This will further strengthen our global position and allow us to unlock new growth opportunities by leveraging our diversified footprint and capabilities,” its CEO Ahmed El Sewedy said. |
EFG Hermes completes Egypt’s largest corporate bond issuance
EFG Hermes, the investment banking arm of EFG Holding (HRHO), yesterday completed advisory on behalf of EFG Corp Solutions on Egypt’s largest corporate bond issuance, valued at EGP 2.65 bn.
The issuance — the fourth by EFG Corp Solutions — has a 13-month tenor and received an A- credit rating from the Middle East Rating & Investors Service. |
Full coverage from non-banking institutional investors:
“By leveraging our extensive network and expertise, we were able to fully cover the issuance through a diverse base of non-bank institutional investors—an achievement that reflects strong market confidence and the strength of the offering,” Co-Head of Investment Banking at EFG Hermes Maged El Ayouti noted.
“This broad appeal underscores the robust market position of EFG Corp-Solutions and highlights the synergies within EFG Holding,” he added.
Advisors:
EFG Hermes served as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. CIB took on the role of placement and subscription agent, while legal counsel was provided by Dreny & Partners. KPMG acted as the transaction auditor.
EFG Hermes’ track record in debt markets:
The transaction is the latest in a string of debt issuances led by EFG Hermes. Among its recent mandates, the firm supported Bedaya in its sixth securitization issuance totaling EGP 1.64 bn, and guided Valu through its fifteenth securitized bond worth EGP 1.036 bn. EFG Hermes also advised on Bedaya’s fifth issuance, valued at EGP 1.78 bn.
|
Egypt’s largest publicly listed real estate developer Talaat Moustafa Group (TMGH) has inked a memorandum of understanding with Iraq’s National Investment Commission for a planned mixed-use integrated city spanning 14 mn square meters in the South of Baghdad. |
Refresher:
The development, featuring around 46k multi-use units, replicates the group’s “well-tested and unique community model” in Egypt and Saudi Arabia, and is expected to generate USD 17 bn in total sales, according to TMGH.
The company aims to finalize land acquisition by year-end, with the full project to be completed within five years.
Management’s comment:
“Given the strong recovery of the Iraqi economy and the supply gap of quality residential offerings in the market, TMG believes it is best positioned to exploit this attractive opportunity to deliver compelling returns,” management noted.
Part of a wider expansion:
The venture follows the 2024 launch of the USD 17.5 bn “Banan” project in Riyadh, Saudi Arabia.
The Iraqi project now brings its land bank in regional markets to some 29 mn sqm, after it recently penned another agreement for a major project in Oman that is expected to generate OMR 1.8 bn (about USD 4.7 bn).
The developer projected yesterday that its regional projects will collectively bring in about USD 33 bn in total sales value once completed, with an expected post-tax profit margin of between 12-17%.
One of the region’s big boys:
|
What else is clapping?
Nas Investment Holding has secured approval from the Financial Regulatory Authority to raise its mandatory tender offer for Samad Misr (Egypfert) shares from EGP 95 to EGP 102. The offer deadline was also pushed back by one day to June 1, 2025. A fair value study by Osoul Arabia had previously pegged the share’s average value at EGP 94.47.
Latest CLAPS
