Pre-Trading Thoughts

Egypt is preparing three possible revisions to the loan agreement to present to the IMF delegation when they land in Egypt mid-next week.

• The first scenario proposes extending the loan program by two years so Egypt ends up having five years to implement the reforms and unlock the entire USD8 billion in funding.
• The second scenario would give the government a year to carry out a stimulus package that includes pausing energy price hikes and slashing interest rates in efforts to boost growth.
• The third scenario suggests securing additional IMF funding, while maintaining the program’s current structure and timeline. This increase would enable the government to strengthen social protections.

The Finance Ministry sold some EGP52.4 billion in EGP-denominated three-month t-bills this week at an average yield of 30.0%. This marks the highest yield on three-month bills since March.

Egypt asked the World Bank to extend the period of the USD500 million local development program in Upper Egypt to end in October 2025 instead of the current month.

The EGX Head said that a package of measures are currently being studied, including launching a new index that combines sustainability and Islamic compliance. He also revealed a study on amending the rules for registering and delisting companies from the market.

Investment Minister Hassan El Khatib laid the foundation stone for Arab Otsuka Nutraceuticals subsidiary Egypt Otsuka’s factory for nutritional products in Tenth of Ramadan.

The Ministry of Electricity is looking forward to receiving a EUR65 million grant from the European Bank for Reconstruction and Development (EBRD) during the coming period.

A new ro-ro shipping line connecting Damietta Port with Italy’s Port of Trieste will begin operations by the end of November.

Global consulting firm Deloitte kicked off its new innovation hub in Cairo yesterday, pledging a three-year USD30 million investment to employ 5k of the country’s “top-tier talent” in several service export sectors.

United Bank will be going ahead with plans to float 330 million of its shares, equivalent to a 30% stake, on the EGX. The bank plans to make its EGX debut before the end of 2024.

ATLC signed a financing contract worth EGP275 million with the Arab Forum for Investments Company to strengthen the capital base.

According to local media, GBCO signed an agreement with Japanese truck manufacturer UD Trucks, granting it distribution rights for 2 models in the Egyptian market.

According to local media, Philip Morris International, disclosed that it has allocated USD45 million in anticipation of potential tax obligations in Egypt. 

ABUK agreed with the Arab Organization for Industrialization to implement a solar energy station with a capacity of 2.5 MW and a cost of EGP90 million. 

MICH released 1Q24/25 results, posting an 8% increase in revenues to EGP260.3 million and 14% growth in net profit to EGP155.9 million. 

The government will offer private sector companies the chance to set up hospitals on 21 land plots as it works to add 173k beds to the country’s residential capacity by 2030.

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