Kazyon to fuel Morocco expansion plans with USD 30 mn from the IFC
EXPANSION- IFC to finance Kazyon’s expansion ambitions with USD 30 mn loan: Local budget supermarket chain Kazyon is in line for a USD 30 mn loan from the World Bank’s International Finance Corporation (IFC) to fund the company’s expansion agenda in Morocco, the lender said in a project summary.Remember: Kazyon Morocco CEO told Asharq Business last month that the company is investing USD 144 mn to expand in the Moroccan market — particularly in major cities — over the coming four years. The supermarket chain also first tapped into the Saudi market earlier in February, with its 50% stake purchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction.DEBT-#1- Egypt to repay a chunk of its loans this November: The government will repay USD 3 bn in loans to Gulf banks by 24 November, Asharq Business reports citing an anonymous government source. The country will repay the loans from the state’s USD reserves, to be equally divided between the green and Islamic financing tranches.It’s also repayment day for some of the country’s bonds: Egypt will repay some USD 1.3 bn in USD-denominated bonds today for debt issued in 2016, according to Al Arabiya, citing unnamed sources. This is expected to bring down external debt owed by the government to USD 80.2 bn, a 5.5% decrease from the USD 84.84 bn recorded at the end of 2023.#2- ERC to repay USD 200 mn in debt by year-end: Qalaa Holdings’ subsidiary Egyptian Refining Company (ERC) plans to repay USD 200 mn of its outstanding USD 742 mn debt by December, company head Mohamed Saad told Al Borsa. This will bring the company's total debt down to USD 524 mn, which it plans to fully repay before the end of 2025. Remember: The multi-bn USD greenfield refinery in Mostorod was funded by USD 2.4 bn worth of loans, which Qalaa has since been trying to pay off despite its businesses achieving good returns. Qalaa’s most recent earnings release shows that of the company’s total consolidated debt standing at EGP 111.2 bn at the end of the first quarter, 72.5% is related to the ERC.Cutting back on costs is also part of the plan: The company’s success in reducing import, storage, and ins. costs helped cut back the government’s fuel subsidies bill by USD 300 mn per year, Hapi Journal reports, citing Saad.RETAIL- Another good reason to quit: US-based tobacco giant Phillip Morris increased the prices of its tobacco products for the the third time this year, upping prices by EGP 5 across its offerings in the local market, according to a letter from the company seen by EnterpriseAM. The price hikes apply to all of the company's offerings including its heated tobacco products, HEETS and TEREA, and traditional cigarette brands Merit, Marlboro, and L&M and their varieties.Philip Morris isn’t the only smokes company upping prices in recent days: EGX-listed tobacco giant Eastern Company on Tuesday similarly hiked prices of its cigarettes by up to EGP 5. The increase came in response to the Finance Ministry enacting the law that allows companies to raise prices by 12% annually without moving into a higher per-pack tax bracket, the head of the Federation of Egyptian Industries’ tobacco division, Ibrahim Imbaby, told EnterpriseAM last week.M&A-New details emerge about Klivvr’s potential new majority owner: The newly established Klivvr Holding — which came to our attention last week with its offer to buy Orascom Financial Holding’s (OFH) entire 98.99% stake in fintech player Klivvr — is owned by the Sawaris family, unnamed sources told Al Mal. The potential transaction comes as part of B Investments' commitment to sell OFH's stake in Klivvr Electronics within a year of acquiring a 68.9% stake in OFH through a share swap earlier this year.We may see more of Klivvr in the local market soon: Klivvr Holding is looking to acquire licenses to perform payment services and non-banking financial services in the local market, the sources added.FOOD SECURITY-Egypt and UK launch project to support local wheat farmers: The Planning and International Cooperation Ministry and the Agriculture Ministry are partnering with the British Embassy in Egypt to bolster food security by “increasing wheat production, addressing price fluctuations, and improving human capital,” the Planning and International Cooperation Ministry said in a statement. The two-year project aims to decrease Egypt's wheat imports by up to 25% by reducing dependency on chemical fertilizers and improving yields. The initiative follows an MoU signed last month, focusing on improving soil fertility and agricultural productivity.LOGISTICS-Egypt and Djibouti ink infrastructure projects agreement: Egypt’s Holding Company for Maritime and Land Transport and Djibouti's Ports and Free Zones Authority signed an MoU to develop infrastructure projects, according to a statement from the Transport Ministry. The statement named ports, roads, logistics zones, and renewable energy facilities as projects that Egyptian companies could offer their expertise and experience to Djibouti.ICYMI: Egypt will supply and install a 276.5 kw solar plant in Djibouti under a bilateral agreement signed between the two sides inked last month. The plant is part of efforts to support Djibouti’s sustainable development plans, and will be implemented alongside training programs to transfer local expertise to Djibouti. EARNINGS-Ibnsina Pharma wraps up 3Q 2024 with record growth in net income: Ibnsina Pharma ended 3Q 2024 with strong financial results, reporting a record net income of EGP 184.9 mn, up 339.9% y-o-y, according to the company’s latest earnings release (pdf). The company’s revenues rose 71% y-o-y to EGP 15.6 bn in 3Q, driven by strong demand across retail and non-retail segments, strategic expansion in high-margin non-pharma products, and re-pricing approvals by the Egyptian Drug Authority that helped offset inflation and currency devaluation impacts.REAL ESTATE-The Social Housing Fund has a new social rent initiative in the works: The Housing Ministry’s Social Housing and Mortgage Finance Fund will design a subsidized rental model in collaboration with the private sector, the fund’s head Mai Abdel Hamid said at last week's World Urban Forum. A pilot rental project in partnership with a fintech company will be launched to test demand and feasibility, Abdel Hamid added.
Sunday, 10 November 2024