EU green bonds expected to smash demand records in coming weeks
EU green bonds set to spur an “absolute riot” among investors: With the EU’s maiden green bond issuance expected to kick off within weeks, bankers and portfolio managers told Bloomberg that they expect the sustainable debt to smash records for demand. Banks are expecting a total of up to EUR 15 bn to be offered in 15-year and 30-year bonds, in the first tranche of a larger plan to offer up to EUR 250 bn, making the EU the world’s leading green borrower and pumping investment into member countries’ transition to renewables. High demand will mean high premiums (“greeniums”) making the bonds more attractive to banks and reserve managers already looking to boost their ESG credentials.
Yet another BTC rally: As equities stumbled and energy soared against a backdrop of inflationary pressures last week, Bitcoin prices rose about 10% on Friday to log the cryptocurrency’s best week since early August. Bitcoin recovered from the threat of a Chinese regulatory crackdown to increase its YTD gains to 87%, buoyed by better news on increased institutional adoption in the US.
But the rally’s biggest driver is inflation, analysts told Bloomberg. Bitcoin is now competing with gold among institutional investors as a hedge against wider price hikes. “Bitcoin has really taken the place of gold in a lot of people’s hearts and minds and portfolios,” said one chief investment officer.
The Saudis move into the Premier League: Saudi Arabia’s sovereign Public Investment Fund announced on Wednesday that it had acquired a 100% stake in Newcastle United, in a consortium with PCP Capital Partners and RB Sports & Media The move has been at least a year in the making, when its bid to acquire the team was first rejected by the Premier League over its trade dispute with Qatar over the broadcast rights of football games in the Middle East during their falling out (remember BeOUT?). Clearing the dispute had paved the way for the current acquisition.
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EGX30 |
10536.39 |
+1% (YTD: -2.9%) |
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USD (CBE) |
Buy 15.66 |
Sell 15.76 |
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USD at CIB |
Buy 15.66 |
Sell 15.76 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
11,591.33 |
+0.2% (YTD: +33.4%) |
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ADX |
7,709.35 |
+0.7% (YTD: +52.8%) |
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DFM |
2,772.44 |
+0.8% (YTD: +11.25%) |
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S&P 500 |
4,391.34 |
-0.2% (YTD: +16.9%) |
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FTSE 100 |
7,095.55 |
+0.3% (YTD: +9.8%) |
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Brent crude |
USD 82.39 |
+0.5% |
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Natural gas (Nymex) |
USD 5.57 |
-2% |
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Gold |
USD 1,757.40 |
-0.1% |
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BTC |
USD 54,916.20 |
+1.49% (as of midnight) |
THE CLOSING BELL-
The EGX30 rose 1.0% at Wednesday's close on turnover of EGP 1.14 bn (26.4% below the 90-day average). Foreign investors were net sellers. The index is down 2.9% YTD.
In the green: Sidi Kerir Petrochem (+3.0%), Orascom Development Egypt (+2.7%) and CIB (+2.4%).
In the red: Telecom Egypt (-3.4%), ElSewedy Electric (-1.9%) and Rameda (-1.5%).