Back to the complete issue
Sunday, 10 October 2021

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.

Up

EGX30

10536.39

+1% (YTD: -2.9%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

11,591.33

+0.2% (YTD: +33.4%)

Up

ADX

7,709.35

+0.7% (YTD: +52.8%)

Up

DFM

2,772.44

+0.8% (YTD: +11.25%)

Down

S&P 500

4,391.34

-0.2% (YTD: +16.9%)

Up

FTSE 100

7,095.55

+0.3% (YTD: +9.8%)

Up

Brent crude

USD 82.39

+0.5%

Down

Natural gas (Nymex)

USD 5.57

-2%

Down

Gold

USD 1,757.40

-0.1%

Up

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%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.