Pre-Trading Thoughts

*Key news articles for today*

The government is planning on offering up stakes in its majority-owned Port Said Container and Cargo Handling Company (PSCCHC) and Damietta Container and Cargo Handling Company (DCHC) on the EGX during 1Q25. The sources expect the government to offer 20-25% stakes in each company, with the IPO’s private placement focused on attracting major companies like the UAE’s AD Ports and DP World.

Kuwait renewed a USD2 bn Central Bank of Egypt deposit certificate due for repayment in April for another year.

Egypt's non-oil exports rose to USD33.35 billion during 10M24, an increase of 12.2% compared to the same period last year.

MPs approved 22 of the 44 articles in the draft cash-based subsidies bill to establish a Takaful and Karama fund to provide cash-based payments to those under the poverty line, funded by the state budget, private contributions, foreign grants and loans, and investments.

The African Development Bank (AfDB) has approved a USD170 mn loan to fund local energy and infrastructure leader Hassan Allam Utilities and Saudi renewables giant ACWA Power’s 1.1 GW wind farm in the Gulf of Suez, set to be the largest of its kind in the Middle East, according to a statement from AfDB. The loan would fund 16.0% of the entire USD1.1 bn project.

The Prime Minister issued a decree setting the selling price of natural gas supplied for electricity generation at USD4 per million British thermal units, to electricity production companies affiliated with the Ministry of Electricity or other companies. The Prime Minister also issued a decree to pay the value of natural gas consumption in USD for free zone and economic zone projects.

The House gave its final nod to five energy exploration bills authorizing the Oil Ministry to contract with local and international companies to explore for oil and gas across Egypt in the Mediterranean, in the Nile Delta, and in the Western Desert.

Transport and Industry Minister Kamel El Wazir called on Mermec to establish a factory to localize the production of signalling and control systems for railways.

Egyptian National Railways finalized an agreement with Spain’s high-speed train manufacturer Talgo to supply seven new luxury sleeper trains, following the recent delivery of six similar models. A EUR200 mn loan to import sleep trains from the company was given the presidential thumbs up in August after being passed by the House in June.

State-owned Holding Company for Roads and Bridges is looking to secure USD500 milliin worth of railway projects with the Iraqi government as a part of Iraq’s plan to spend USD100 billion on infrastructure over three years. 

MASR (FV: EGP8.11, OW) 1) aims to build two hotels in Taj City in 2025, 2) aims to invest EGP20.0 billion in construction work in 2025, 3) signed a contract with Majid Al Futtaim to open a Carrefour branch in Taj City, and 4) expects to start collecting rental income in 2027.

Banking

United Bank has concluded its retail and private offerings, with its retail offering that closed yesterday being oversubscribed 59x.

CICH announces the completion of the issuance of securitization bonds for Al-Tawfeek Lease and Tamweel Mortgage Finance amounting to EGP1.5 and EGP1.8 billion; respectively. 

FWRY (FV: EGP13.00, OW) announced that its fully owned subsidiary, Fawry MSME, BNPL’s portfolio onboarded over 50,000 merchants to its service, facilitating 750k transactions with a total value of EGP2 bn.