More funds for Egyptian SMEs: Avanz Manara, a private equity vehicle focused on Egyptian SMEs, plans to make three new investments during 1H 2023, Haytham Wagih, senior director at Avanz Capital Management, reportedly told Al Mal. The firm is considering investing in three funds targeting SMEs, he said, without disclosing further information about the plans.

Avanz Manara has a lot of state backing: Avanz Capital launched Manara last March with initial capital of EGP 905 mn, and plans to raise this to EGP 2 bn via two capital increases over the course of this year, he said. The company’s founding shareholders are a who’s who of state financial institutions including the National Bank of Egypt, Banque Misr, Banque du Caire, Misr Insurance Holding Company, Suez Canal Bank, and the United Bank. Also shareholders: Attijariwafa Bank Egypt and Ahli United Bank, both private-sector entities.

The story so far: The fund has currently invested EGP 7 mn in local firms: EGP 5 mn it handed to Egypt-focused PE outfit Ezdehar and EGP 2 mn into logistics startup Trella, Wagih said.

EgyCop is expected to go live next month, the newspaper quotes Avanz Capital co-founder and chief portfolio and risk officer Hany Assaad as saying. The fund, which is being managed by Avanz, will invest in low-carbon projects that issue carbon credits, and plans to raise an initial EGP 1 bn, he said, adding that they’re still waiting on a license from the Financial Regulatory Authority. The FRA previously said it was working on the license as well as on amendments to the Capital Markets Act that would validate the use of carbon certificates as a tradable security.

Background: Planning Minister Hala El Said announced the creation of the fund at COP27 in November. It is set to complement the EGX’s voluntary carbon market, which is set for launch in the middle of this year.

Africa-wide low-carbon fund in the works: Avanz Capital and MGM Financial & Banking Consultants are considering launching an Africa-wide fund investing in low-carbon projects that issue carbon credits “in partnership with an international financial institution,” Assaad was quoted as saying in a separate Al Mal article. The fund will target an initial capital of USD 200 mn and is envisaged as an Africa-wide version of EgyCop, Assaad said.

The African fund is eyeing investing in Ghana, Nigeria, and Morocco as a start, Assaad said. The companies are in talks with investors from South Africa, Tanzania, and Kenya to participate in the fund, MGM board member Sherif El Diwany is quoted as saying.

ALSO IN CAPITAL MARKETS-

National Navigation Company mulls a return to the EGX: The board of the state-owned National Navigation Company (NNC) will propose re-listing the company on the EGX in the next shareholders’ meeting in March, Al Mal reports, citing unnamed sources.

The company was kicked off the bourse in 2009: The EGX delisted NNC in 2009 for failing to comply with listing regulations, including the requirement to freefloat a minimum of 5% of the company, according to the newspaper.

Why go back? The company is looking to re-list on the EGX in order to fund new capital expenditure that includes the purchase of seven new cargo vessels for USD 189 mn, according to the news outlet.

Shareholder structure: The company is majority-owned by the Holding Company for Maritime and Land Transport (HCMLT) (69%), while the Suez Canal Authority’s Canal Shipping Agencies owns 20%, according to the Public Enterprises Ministry. The remaining shares are held by state-owned banks and financial institutions.