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Egypt faces USD 10 billion financing gap this year
The Egyptian government is facing a financing gap estimated at about USD 10 billion in the current fiscal year (2024-2025), and it is working to bridge it primarily through the issuance of sukuk and international bonds, a government source told Asharq Business on condition of anonymity.
How to solve the problem:
Egypt is considering selling around USD 3 billion in Eurobonds and other debt instruments by the end of the fiscal year in June 2025, marking the first such sale since in years, Finance Minister Ahmed Kouchouk said during a meeting with international investors in London last week.
Remember:
Egypt’s last USD-denominated bond issuance was in 2021 when the government sold USD 6.75 billion worth of bonds through two issuances, one in February and the other in September.
CBE to list stake in United Bank on EGX by Q1 2025
The Central Bank of Egypt (CBE) said on Sunday it plans to publicly list shares in United Bank (UB) on the Egyptian Exchange. The Central Bank noted that the IPO would take place before the end of the first quarter of 2025.
About UB:
UB, along with its non-banking division, have an extensive network consisting of 68 branches and a workforce of 1,800 individuals, the CBE noted.
In June 2024, the bank’s total assets increased to EGP 106 billion, up from EGP 72 billion in 2021.
UB’s profits also surged to EGP 1.742 billion by the end of December 2023, marking a notable rise from EGP 1.145 billion in December 2021.
The catalyst:
The move is in line with the International Monetary Fund’s requirement to accelerate implementation of the state privatization program. Expediting the government’s divestment program in the companies it owns and creating a “level playing field” that avoids unfair competitive practices by state-owned companies will be critical to keeping Egypt on the right track, the IMF noted.
Emaar Misr — owner of Marassi on the North Coast — is looking to channel USD 2 billion in Egypt-bound investments over 2024 and 2025, its founder and chairman Mohamed Alabbar said in an interview with CNBC Arabia.
Abbar said in an interview with Asharq that the company has invested approximately USD 20 billion since it began operating in the country, at a rate of USD 1 billion annually.
Eying Red Sea developments:
The company is particularly eying development opportunities on the Red Sea’s coast, Abbar noted.
Remember, Similar to the USD 35 billion Ras El Hekma agreement with the UAE, the Egyptian government is currently developing an investment plan to present Ras Banas on the Red Sea to both foreign and local private sector investors
Big plans ahead:
Emaar Misr’s board of directors also approved in July a capital increase of 3.19 billion shares to complete the acquisition of an additional 75% stake in Albro North Coast for Developments, and a 25% share in Sky Tower for Real Estate Development.
What else is clapping?
- A government source told Enterprise that the cabinet plans to sell an extra 10% of its shares in Telecom Egypt by the end of the year.
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