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Sunday, 12 June 2022

THIS EVENING: Our first sovereign sukuk issuance is still on hold + US equities face “darkening outlook”

Good afternoon, friends. It’s a relatively calm start to the week (especially if you’re comparing to the past few weeks of unrelenting newsflow) — but we’re not complaining.


Our first sovereign sukuk issuance is still on hold as global market conditions continue to be unfavorable for the bond sale, Finance Minister Mohamed Maait told reporters today (watch, runtime: 1:51). The issuance was originally expected to go to market before the end of the current fiscal year at the end of June, but markets are currently not ideal, Maait said. “We’re in constant communication with our financial advisors on when would be the best time to go ahead with the sale,” he said. “There are estimates that the volatility could subside in 3-4 months, but nothing is certain right now.”


There’s no single story topping headlines in the international business press this afternoon. The Wall Street Journal is leading with the “darkening outlook” on US equities and soaring inflation, while Bloomberg’s top story is that Iran could be the new trade corridor for Russian goods to arrive in India. Meanwhile, Ukraine’s efforts to get its grain shipments out into the world through Poland and Romania are still facing “bottlenecks,” Reuters reports.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Inflation rose to a three-year high in May at 13.5%, but came in lower than expected and even slowed down on a monthly basis.
  • CIRA could issue Egypt’s first future flow securitized bonds next month: The Financial Regulatory Authority has approved a program that would see EGX-listed private sector education outfit CIRA issue EGP 2 bn of future flow securitized bonds over three years.
  • The Egyptian Belgian Company has new Saudi owners: Saudi food conglomerate Savola has signed an agreement to acquire 100% of the Egyptian Belgian Company.


*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: Amid a myriad of global and local challenges facing the industrial sector, Enterprise assessed industrial companies’ share performance on the EGX in 1Q 2022 and YTD. What we found is a disappointing stock performance that is at odds with the gains made in their financial statements. This could signal that the pressure on the industrial sector is still to be felt on their top and bottom lines, but investors are taking caution preemptively.


It could be a big week for our gas export ambitions: Hopes will be high this week that Egypt can ink an agreement to increase exports to the EU when EU Commission President Ursula von der Leyen lands in Cairo for talks with President Abdel Fattah El Sisi. According to a draft document seen by Bloomberg earlier this month, the EU is expected to sign an MoU with Egypt and Israel that will see more Israeli gas shipped to Egypt’s LNG facilities where it will be exported across the Mediterranean. The pact could also see the three sides work to curb methane gas emissions, the business information service reported.

The African Export-Import Bank’s (Afreximbank) annual meetings start Wednesday at the new capital’s St. Regis Almasa Hotel. President Abdel Fattah El Sisi, Central Bank of Egypt Governor Tarek Amer, and Afreximbank President Benedict Oramah will give keynote speeches at the event, which will focus primarily on implementing the Africa freetrade agreement that came into force in 2021.


There’s a handful of conferences coming up:

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- Expect a daytime high of 35°C tomorrow before the mercury falls to 23°C at night, our favorite weather app tells us.

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.

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