Elevate Healthcare to acquire 100% of Nile Scan: Investment banking outfit Elevate Capital’s Elevate Healthcare fund is reportedly looking to fully acquire clinical radiology and lab service provider Nile Scan & Labs for EGP 500 mn, Asharq Business reports, citing the company’s CEO Tarek Moharram. The company is expecting to close the deal in April, the news outlet reports. Moharram wasn’t immediately available for comment when we reached out to him yesterday. About the fund: Launched in 2021, Elevate Healthcare is a partnership between Elevate Private Equity and Banque du Caire’s Misr Capital, which are targeting a final close of USD 380 mn. It aims to invest in verticals spanning hospitals, pharma, medical education and healthtech in Egypt and sub-Saharan Africa. Elevate is already involved with Nile Scan: At the time of the fund’s launch, Elevate said that it had been the “strategic manager” of Nile Scan for the past four years, during which time it had achieved a CAGR of 38%. It’s unclear how much of the company Elevate currently owns. Moharram told Enterprise last year that some 30% of the fund’s investments were set to go towards diagnostics through expansions and acquisitions made via Nile Scan.More takeover plans in the pipeline: The fund is looking to deploy EGP 500 mn to make 4-5 new acquisitions, he told Asharq, without providing further information.The fund also plans to take its new health education platform online this year: Elevate is planning to launch a new USD 50 mn health education platform in 2023, Moharram told Asharq Business. Companies will be able to offer various qualifications and postgrad studies in pharma and medical management through the platform, he added, according to the news outlet. Elevate has already made agreements with the University of Vienna to be part of the platform and is currently working to sign similar agreements with other major international universities, Moharram said.

Shari’ah-compliant leasing company AT Lease has closed its third securitized bond issuance worth EGP 1.6 bn, backed by a receivables portfolio of around EGP 2 bn, a source at the company confirmed to Enterprise, after the company released a statement (pdf). The firm’s leasing portfolio currently stands at EGP 4 bn, the source said. The company hopes to issue securitized bonds annually, depending on the size of its portfolio, they added. Who bought in? Banque Misr, NBE, Attijariwafa Bank, Banque du Caire, AAIB, Al Baraka Bank, Ahli United Bank, and the Industrial Development Bank. Advisors: Misr Capital and Al Ahly Pharos were co-lead managers, financial advisors, and underwriters for the transaction. Its parent Banque Misr acted as arranger, co-underwriter, and custodian. Our friends at ALC Alieldean Weshahi & Partners acted as legal counsel, while Baker Tilly Hilal & Abdel Ghaffar was the auditor. With AT Lease’s offering included, Egyptian issuers have now sold around EGP 10.8 bn worth of securitized bonds since the start of 2022, by our count. That’s more than two-thirds of the total value of EGP 15.8 bn taken to market last year. MORE SECURITIZATION IN THE WORKS?- Al Ahly Mortgage Finance could securitize EGP 1 bn of its portfolio this year, Al Mal quoted managing director Hatem Amer as saying. The NBE subsidiary is reportedly in talks with several firms to provide financial and legal advice for the issuance. EDITOR'S NOTE- Corrected on 2 June to identify Al Ahly Pharos as a co-lead manager, financial advisor, and underwriter.

Abu Dhabi wealth fund ADQ is acquiring state-held stakes in Abu Qir Fertilizers, Mopco, and Alexandria Container & Cargo Handling, Bloomberg reports, citing a source it says has knowledge of the matter. Bloomberg’s source did not disclose further details on how much the government has agreed to sell or an expected timeline.The reported sale would be part of a USD 2 bn investment from ADQ that would see it buy up state-held stakes in five EGX-listed companies, which Bloomberg reported earlier this week would include up to 18% of leading private sector bank CIB, an unspecified stake in fintech darling Fawry, and three other unnamed companies. State institutions own at least 8.3% of CIB and 12.6% of Fawry, according to the most recent available filings for each institution (here and here — pdf), but likely own far more shares in CIB.Some of the shares in Abu Qir could come from the National Investment Bank, which according to Masrawy is planning to sell down some of its holdings in the company, citing an anonymous government source. State-owned firms own more than 70% of the fertilizer company, of which 21.5% is held by the NIB.Shares rose on the news: Alex Containers gained 4.9% in trading yesterday while Abu Qir rose 1.8%. Mopco finished 0.5% up.Ahead of ADQ’s reported stake purchase in Fawry, Banque Misr raised its stake in the fintech darling yesterday, buying an 8.85% stake in a EGP 1.47 bn block transaction, according to a disclosure to the EGX (pdf). The bank purchased 151.10 mn shares at an average price of EGP 9.75 per share. The transaction, which was executed by CI Capital, brings Banque Misr’s total stake in Fawry to 15.78%.Fawry’s shares dipped 0.9% at yesterday’s close after the block trade was announced. The dip came one day after its shares surged 5.4% on the heels of the news of ADQ’s planned stake purchase.ADQ has had heavy appetite for Egypt for some time now: In 2019, ADQ established a USD 20 bn joint investment fund with the Sovereign Fund of Egypt to channel funds into a variety of industries and assets. The wealth fund has had plenty of appetite for acquisitions in Egyptian companies, with its latest blockbuster transaction being its acquisition of leading real estate developer SODIC alongside Aldar Properties last year. ADQ also acquired 99% of Bausch Health’s local pharma outfit Amoun Pharma, as well as 75% of Atyab brand owner Ismailia Agricultural and Industrial Investments.And there could be more: Agthia, the fund’s food subsidiary that acquired Ismailia, reiterated earlier this week that it is pursuing further acquisitions in Egypt’s frozen meat and fast food industries.OTHER M&A NEWS-CI Capital approves acquisition of Misr Capital brokerage unit, education investment platform: CI Capital’s board has signed off on buying 99% of Misr Capital’s stake in Misr Capital Fixed Income Brokerage, according to a disclosure to the bourse (pdf). Misr Capital is Banque Misr’s investment arm. Banque Misr also owns a 90% stake in CI Capital. The investment bank also approved the acquisition of Misr Capital’s 25% stake in state-backed education investment fund Lighthouse Education, as well as its stake in its money market fund and another fund investing in debt instruments.The Public Enterprises Ministry is offering a 25% stake in Cairo’s soon-to-be restored Continental Hotel to investors, in a public-private partnership that will see the Holding Company for Tourism hold the remaining 75% stake, Al Mal quotes Minister Hisham Tawfik as saying. Some 40% (c. EGP 600 mn) of the EGP 1.5 bn restoration project will be financed through bank loans, Tawfik said. The private sector partner will invest EGP 375 mn into the project.

Elevate Private Equity (Linkedin) is investing at least EGP 500 mn to establish a dedicated cancer treatment facility in Egypt, a company spokesperson told Enterprise yesterday. This came on the same day that Elevate announced (pdf) the signing of an MoU with the France-based Gustave Roussy Institute, one of Europe’s leading cancer hospitals, to collaborate on the facility. Elevate was unable to provide an exact value for the MoU when we asked. First services coming in 2H2022: The center will comprise a digital pathology platform, a cancer diagnostics center, and a cancer management hospital. Pathology and diagnostics services will be up and running within the next 6-9 months, while the completion date for the full hospital is still to be determined, the company told us. Elevate is investing through its new Elevate Healthcare platform established with Misr Capital last year. The USD 380 mn fund aims to invest in healthcare in Egypt and sub-Saharan Africa and has been billed as the biggest specialist fund of its kind on the continent. Elevate will also be leveraging a USD multi-mn agreement with Elekta to bring cutting-edge radiotherapy cancer treatment to Cairo, making it the first private sector institution to bring this technology to the Egyptian market, the spokesperson told us. ALSO IN INVESTMENT- CIRA + Al Ahly Capital to cover half of investments in applied tech university: Private sector education outfit CIRA and Al Ahly Capital, the National Bank of Egypt’s investment arm, will together finance half of CIRA’s EGP 2.1 bn applied tech university, CIRA Project Manager and Investments Officer Mohamed El Khouly told Al Mal. Of the EGP 1 bn that CIRA and Al Ahly Capital will pony up, CIRA will contribute 60% and Al Ahly Capital will provide the remaining 40%, a CIRA official confirmed to Enterprise. Where’s the rest of the funding coming from? CIRA is still in talks with banks for a loan to cover the other half of the investment costs, El Khouly said. Last we heard, the company was reportedly negotiating with a syndicate of three international banks for a credit facility. The plan for the university: The first phase of the project will see four colleges established for when the university opens its doors in the 2022-2023 academic year, at a cost of around EGP 1.4 bn, according to El Khouly. This amount includes EGP 700-800 mn that will be financed through bank loans, he said. The university will then introduce two new colleges every year until it reaches a total of 13. EDITOR'S NOTE- This story was updated on 22 February, 2022 to amend Mohamed El Khouly's title.

The Financial Regulatory Authority (FRA) has set out responsible lending principles for non-bank SME financing products, according to a statement (pdf). The new responsible lending code (pdf) offers guidance on how to act in borrowers’ best interests by making sure they are offered the most affordable and suitable options. The FRA says the framework develops a system that ensures transparency of terms through disclosures that clearly explain pricing plans, with an eye to making it easier for borrowers to compare options.What do the principles entail? Non-bank lenders are now required to set up a three-tier pricing system for their financing products for low-risk, medium-risk, and high-risk customers. The regulator lays out equations for lenders to determine how to price their products, based on certain factors. The nominal interest rate for loans can be set either as a simple rate that lenders can recalculate on a monthly basis, an annual declining rate, or a fixed interest rate for the full tenor of the loan.What factors determine the pricing of SME loans? The duration and tenor of the facility, whether it will be used for investment (capital expenditure) or operating expenses, the borrower’s credit history with the lender, whether or not the loan and project being funded are covered by ins., and the borrower’s risk level, according to the new framework. Lenders also need to account for the cost of loan loss provisions, administrative costs, annual inflation rates, and targeted net income margins.Non-bank lenders have six months to comply with the new principles, which are set to improve market conditions and competition protection, according to the statement.What’s in it for the lenders? The Central Bank of Egypt (CBE) will ensure that lenders who comply with the framework have access to sufficient liquidity for their operational costs. These lenders will also have access to discounted or without-charge training workshops.The responsible lending initiative was launched last month by the CBE and the FRA in partnership with the World Bank, and is directed at all SME lenders they regulate. The World Bank has committed funding to train members of the Egyptian Microfinance Federation in best practices, using a curriculum developed by international institutions specialized in responsible finance.Who stands to benefit from the initiative? More than 3.5 mn owners of micro, small or medium-sized enterprises, with balances worth around EGP 27 bn, according to the FRA.IN OTHER DEBT NEWS- Misr Capital, the investment arm of state-owned Banque Misr, is working on sukuk issuances for three EGX-listed companies this year, with the first issuance expected in 2Q2022, CEO Khalil El Bawab told Bloomberg Asharq. El Bawab did not disclose the names of the companies or the size of the issuances.We’re pretty sure we know who one of these companies is: Misr Capital has been appointed by Palm Hills Developments (PHD) to underwrite and promote its planned EGP 3 bn sukuk sale, which could go through this quarter pending regulatory approval, Ayman Elsawy, Group CFO at Contact Financial Holding, told us last month.Also in the works: Wadi Degla Developments’s EGP 2 bn sale — which we were expecting last summer — and Amer Group’s EGP 1.1 bn issuance are expected to happen during the first half of the year.A sukuk “boom” in 2022? El Bawab said that Egypt’s corporate sukuk market will see a “boom” this year, and predicted that more than EGP 10 bn of the Sharia-compliant securities would be offered to investors. By our count, only one EGP 2.5 bn issuance from Contact Financial Holding (formerly Sarwa Capital Holding) took place last year, despite predictions that EGP 20-25 bn in corporate sukuk would be issued.SEPARATELY- Misr Capital is currently working on issuing securitized bonds worth around EGP 7-8 bn for several companies, with the first of them also penciled in for the second quarter, El Bawab told Asharq, without providing further details.

Fawry and Misr Capital are launching the MENA region’s first fintech-based money market fund, Fawry Yawmy, Fawry announced in a press release (pdf) yesterday. The money market fund, which is set to launch on 30 January, is being targeted at individual retail investors with an initial investment ticket of EGP 500. Would-be investors can buy in through any of Fawry’s 160 branches or 250k point-of-sale machines and, later this year, through the MyFawry app.What’s a money market fund? It’s a type of mutual fund that invests in short-term, high-liquidity assets including currency, currency-equivalent securities, and debt-based securities, with the aim of offering a low-risk, highly liquid investment. Investopedia has lots more. Fawry Yawmy will “further facilitate retail investors’ entry to the Egyptian debt market,” said Fawry CEO and founder Ashraf Sabry.This is the first co-sponsorship of a fund for Fawry, and the second for Misr Capital, which launched a USD 380 mn specialist fund with Elevate Private Equity last year. Misr Capital is one of the region’s largest mutual fund investment managers, CEO Khalil Bawab said in the release.This comes as Fawry plans to expand its consumer financing and non-banking financial services offering, with a plan to raise its capital by EGP 800 mn through a rights issue to shareholders in 1H2022.CORRECTION- We incorrectly said in yesterday’s edition of EnterpriseAM that Fawry’s most recent capital increase was in November 2020. The company most recently completed an EGP 400 mn capital increase through a rights issuance in June 2021. The story has been updated on our website.

OUR ANALYST OF THE WEEK- Ahmed Abbady, senior investment analyst at Misr Capital’s asset management unit (Linkedin).My name is Ahmed Abbady and I’m a senior investment analyst at Misr Capital’s asset management unit. I participate in selecting stocks and providing the necessary support to make investment decisions. I started my career as a sell-side analyst at Jazira Capital, where I covered building materials and consumers for three years, then moved to Misr Capital in 2018. From my experience, working as a buy-side financial analyst is very similar to the sell-side — they both use the same analytic tools. I love numbers and believe in their honesty in relaying information; this was exemplified for me when I got my CFA.The best part of working in asset management is the exposure to many sectors. Curiosity is my chronic disease and research and analysis is my recovery [laughs]. Every day, I like to read and learn something new. The job forces you to get to know most industries in depth, and in the end you have the understanding to hold a conversation in investments, stocks, or asset allocation.I focus on fertilizers, building materials, healthcare, pharma, and real estate. I think healthcare, pharma, and real estate have been oversold in the past period amid the uncertainty of the pandemic and new regulations and they might need more time than 2022 to recover. A lot of people began avoiding hospitals and medical services because they were afraid of getting infected with the virus, and this was a hit to the companies’ volumes, and in turn, their stocks. Meanwhile, fertilizers are booming, but could slow down in the coming period. As for building materials and construction, it all depends on commodity prices and how they move this year.The worst thing about my job is the stress. You have to be as accurate as possible in the shortest time possible. Time is of the essence in the field and if anything happens locally or globally, you have to interrupt your plans and get the work done.We’re currently employing a hybrid system at work. We spend two weeks at home and two weeks in the office. I don’t enjoy WFH because I feel that all days start to feel the same — but it really made me appreciate my wife and all her efforts to take care of me, our home, and our infant son Mazen.Regarding my job, the uncertainty from the pandemic has made markets more sensitive. Any news related to covid-19 or new variants have a very visible global reaction both here and abroad. However, the vaccination rollouts are progressing well and I hope that we recover from the pandemic very soon.The secret sauce for investment, in my opinion, is to perfect the methodology of selection and the timing of execution. The methodology of selection involves looking at a stock with a strong growth story, sustainable quality, good governance, and a potential short term catalyst that can unlock the expected upside. As for timing, it’s important to note the average cost of a stock and aim to buy when it’s around that level. Investors should avoid buying a stock when prices are on an upward trend or selling when stock performance is down.The most important factor I look at before making a recommendation is management. Your forecast and assumptions on a company are based on how credible management was in the past and how much they succeeded in delivering on their guidance. I’ve also learned during my time in asset management that investors focus on stock liquidity when looking at emerging markets, so that’s also something I factor in.It’s a bit too early to forecast the performance of the EGX in 2022, but the year seems promising. The bourse has been performing well for over 30 weeks now, we saw a recovery in many sectors in 2021, and Egypt’s vaccine drive is moving forward steadily. However, inflation and higher interest rates are the main challenges that could affect us in 2022. All indicators say that local inflation will increase in 1H2022, in line with the global trend.Being a new father, the day becomes too busy to watch anything without interruption. However, some movies are close to my heart such as 3 Idiots, The Green Mile, and Escape Plan. I’m also a huge fan of classical Arabic films. I find them a perfect mix of comedy and romance. A few names off the top of my head are Ibn Hamido, A’elit Zizi, and Esha3et 7ob.In my downtime, I like to repair my house [laughs]. I know it’s a bit weird, but I take fixing any damage as a challenge and YouTube is a great mentor. Sometimes I’m successful at repairing things myself, but a lot of the time, I make the situation much worse [laughs] — that’s when I finally decide to call a specialist. However, the best time I spend during my day is playing with my son. We love to play hide and seek and he always gets so excited when he finds us. I also enjoy going out with family and friends, especially on the weekends. MARKET ROUNDUP-The EGX30 rose 0.7% at today’s close on turnover of EGP 1.09 bn (14.7% below the 90-day average). Regional investors were net buyers. The index is up 0.3% YTD.In the green: Egypt Kuwait Holding (+7.4%), AMOC (+6.4%) and Raya Holding (+5.9%).In the red: Cleopatra Hospital (-1.4%), Ezz Steel (-1.4%) and Orascom Development Egypt (-0.9%).

Companies raised a combined total of nearly EGP 1.75 bn in three securitizations last week as the securitized bond market saw a flurry of activity to close out the year.By our count, this brings the total number of securitized bond issuances that went to market last year to 19, with a combined value of EGP 15.8 bn. We expect a few more issuances to close soon, as the Financial Regulatory Authority said late last month (pdf) it would approve 11 sales worth a combined EGP 11.5 bn before the end of 2021.EFG Hermes Corp Solutions closed its first EGP 790 mn securitized bond issuance last week, part of a wider EGP 3 bn program, EFG Hermes said in a statement (pdf) on Thursday. The issuance is backed by a EGP 815.1 mn receivables portfolio covering 47 lease contracts. EFG Hermes was the sole financial advisor, sole transaction manager and book runner, underwriter, and sole arranger on the issuance.Pioneers Properties closes EGP 627.5 mn securitized bond issuance: EFG Hermes was also the sole financial advisor, sole transaction manager and book runner, underwriter, and sole arranger on a EGP 627.5 mn securitized bond issuance on behalf of Pioneers Properties for Urban Development on Thursday, according to a statement (pdf). The issuance, which was the first tranche of Pioneers’ EGP 3 bn bond program, is backed by a EGP 798.3 mn receivables portfolio, the statement notes.Rawaj Consumer Finance also closed a EGP 305.5 mn securitized bond issuance, according to a press release (pdf) on Thursday. The issuance is backed by account receivables from Tawriq for Securitization. Misr Capital was sole financial advisor, bookrunner, arranger, and general coordinator for the transaction. Misr Capital, Banque Misr, National Bank of Egypt, and Arab African International Bank acted as underwriters for the issuance. Dreny & Partners acted as legal advisors and Ernst & Young as auditor.

Palm Hills Development closed on Thursday a four-tranche EGP 1 bn securitized bond issuance, marking the company’s seventh securitized bond since 2016, PHD said in a statement (pdf). The issuance was backed by a EGP 1.05 bn receivables portfolio. The tranches were rated AA+, AA, A+, and A-.Advisors: Sarwa Promotion and Underwriting was lead manager and arranger on the offering, which was underwritten and co-arranged by the National Bank of Egypt, Banque Misr, Misr Capital, CIB and Ahli United Bank. Our friends at ALC Alieldean Weshahi acted as advisor.Reminder: We still have some EGP 8 bn-worth of securitized bonds hitting the market this month: GB Lease, Corplease and GlobalCorp are issuing a combined EGP 7.9 bn in securitized bonds by mid-December, Al Mal reported, citing unnamed sources. GB Lease will make two bond issuances of EGP 2.6 bn and EGP 1.6 bn to market by mid-December, with CIB acting as primary lead manager for the issuance, the sources said. CI Capital’s Corplease is expected to issue a EGP 2.7 bn issuance by mid-month, led by Misr Capital. GlobalCorp is also on track to issue the first EGP 1.1 bn tranche of a EGP 3-3.5 bn securitized bond issuance by mid-month, according to Al Mal.

EGX-listed education outfit CIRA is borrowing EGP 375 mn from Ahli United Bank to finance fresh investments, the company said in a regulatory filing (pdf) yesterday. The company’s board greenlit the decision earlier this week, the disclosure says. No further details or information were provided in the disclosure and a company spokesperson was not immediately available for comment.This is the latest loan CIRA is taking on to fund its investment plans: The company had said in September that it’s planning to borrow EGP 260 mn from an unnamed Egyptian bank to fund unspecified new projects. CIRA also said earlier this year that it was in talks with a syndicate of three international banks for a credit facility to finance around 40-50% of its planned EGP 2 bn applied tech university.MEANWHILE- Financial leasing company EgyLease closed a EGP 749.8 mn securitized bond issuance, according to a statement (pdf) from Misr Capital, which acted as co-lead on the transaction alongside state-affiliated securitization firm Al Taamir.The securitized bond market has been on a roll these past few months, with Raya subsidiary Aman completing the issuance of EGP 585 mn in securitized bonds, while upmarket developer SODIC closed an EGP 343 mn securitized bond sale. Palm Hills Development, Premium International, and Arabia Investment Holdings subsidiary Rawaj also took sales of the asset-backed securities to market earlier this year.Unclear about how securitized bonds work? We’ve got you covered right here.

Egyptian workers abroad will be able to get state-backed ins. policies here at home starting 2022 under a decision (pdf) by the Financial Regulatory Authority. The decision places a state body that had been responsible for ins. against traveling abroad in charge of tallying up expat workers and ins. them against injuries.Some things we’re keeping an eye on this morning: Fawry is partnering with Uber to allow Uber customers to recharge their Uber wallets via Fawry.Pioneers Holdings — which will soon be rechristened Aspire Capital following the completion of a company demerger — plans to establish a microfinance arm dubbed Kheir, as well as a real estate finance company. Natural gas sales made by state-owned EGAS increased 5% in FY2020-2021 to 2.34 tcf from 2.23 tcf last fiscal year.The Civil Aviation Financial Holding Company (CIAF Holding) has launched its first EGP 100 mn investment fund. Subscription to the fund, dubbed “Tharwety Development Fund,” will be through Misr Capital and Misr Capital Fixed Income Brokerage.

A low-carbon ETF tracker fund could be coming to the EGX: Banque Misr is considering launching an EGX-listed tracker fund allowing traders to invest in companies included in Refinitiv and the Arab Federation of Exchanges’ (AFE) MENA low-carbon index, Vice Chairman Akef El Maghraby told Al Borsa. Both Banque Misr and its investment arm Misr Capital declined to comment on the matter when approached by Enterprise.This will be the first exchange-traded fund in the region to track the Refinitiv AFE Low Carbon Select Index, which was launched last year to provide investors with access to low-carbon equities across the Middle East and North Africa. EFG Hermes and CIB are among the 30 constituents that make up the index, which includes banks and companies mainly drawn from Saudi Arabia, Kuwait, the UAE and Qatar.Also from Banque Misr: Misr Capital’s EGP 500 mn real estate investment fund will start operations before the end of this year, El Maghraby said. Earlier this year, the Banque Misr subsidiary submitted to the Financial Regulatory Authority (FRA) the incorporation documents for the company, which will invest directly in real estate assets, rather than purchasing shares in EGX-listed real estate companies.

Banque Misr is aiming to launch what it is positioning as the country’s first gold investment fund, Akef El Maghraby, the bank’s vice chairman, told Al Shorouk. The fund aims to meet the needs of investors who wish to invest in gold but lack the necessary experience, according to El Maghraby.More projects in the pipeline: The bank is currently in the process of establishing the Pyramid Investments Company, which aims to support projects in labor-generating industries and exports, as well as the expansion of existing local industrial facilities.The bank has already branched out into education: Earlier this year Banque Misr, along with Misr Ins. Holding Company (MIH), the SFE, and the Suez Canal Bank contributed a combined EGP 375 mn to paid-in capital of Lighthouse Education — which is eventually expected to become one of the largest education sector investment vehicles in the country.The bank is also expected to take part in the launch of an EGP 1 bn fund of funds during 4Q2021, in cooperation with four other state-owned banks — the National Bank of Egypt, Suez Canal Bank and Banque du Caire. The fund plans to invest in SMEs and companies operating in healthcare, education, fintech, agribusiness, renewables, fast-moving consumer goods as well as information and communications technology.

Financial leasing company EgyLease is working to issue EGP 750 mn in securitized bonds, a move that is being carried out by Misr Capital and state-affiliated securitization firm Al Taamir, Al Taamir Chairman Mazen Hassan told Hapi Journal, without providing further details. Al Taamir is busy right now: The special purpose vehicle — owned by the New Urban Communities Authority (NUCA) — is also in talks to manage issuances for Al Oula, Palm Hills, and Mountain View. Hassan told us last month that Al Oula is planning a EGP 650 mn securitized bond sale, which still needs to be signed off on by the company’s board. The securitized bond market has been picking up this year: Earlier this year, Raya subsidiary Aman completed the issuance of EGP 585 mn in securitized bonds, while upmarket developer SODIC has closed a EGP 343 mn securitized bond sale. And there are a few we’re still keeping an eye out for: EFG Hermes subsidiary Valu has said it is planning a maiden securitized bond issuance worth EGP 2 bn and EFG Hermes Corp-Solutions revealed plans to raise EGP 500-700 mn from a securitized bond issuance in 4Q2021. SODIC, Contact Financial Holding, Edge Holding and Raya’s Aman have all been reported as having plans to securitize parts of their portfolios. Need a refresher on how securitized bonds work? We’ve got you covered right here.

Banque Misr green bond issuance in the works? Banque Misr could soon be following the likes of CIB and the Finance Ministry by issuing its very own green bonds to investors, according to Al Mal. The state-owned bank is exploring the possibility of selling the climate-focused securities, Vice Chairman Akef El Maghraby told the newspaper, without revealing further details about the bank’s plans.2020-2021: The year of the green bond. Last year year saw the maiden issuances of Egyptian sovereign and corporate bonds. CIB was the first to take a corporate issuance to market this past June, selling USD 100 mn of five-year, fixed-rate bonds to the International Finance Corporation, while the Finance Ministry held its first green bond sale last September, issuing USD 750 mn bonds in an issuance that was almost 5x oversubscribed.CI Capital-Misr Capital integration coming? Banque Misr is considering merging some of CI Capital and Misr Capital’s activities, El Maghraby said, without disclosing further information. The vice chairman said earlier this year that the bank could move to integrate some of the firms’ activities such as asset management, but said that a merger is “unlikely.” This would create an asset manager with assets under management worth EGP 35 bn. Banque Misr acquired a 90% stake in CI Capital earlier this year, and is in the process of acquiring CI’s entire 98% stake in its consumer finance subsidiary, Souhoola.ALSO FROM BANQUE MISR- The state-run bank is on the verge of setting up an EGP 500 mn real estate investment fund, with the participation of Banque du Caire (BdC) and Suez Canal Bank, unnamed sources in the know told Al Shorouk, without specifying an estimated timeframe. An unnamed subsidiary of Banque Misr will take over the management of the fund, which will invest in commercial and administrative assets nationwide in a way that guarantees constant and recurring income from rental returns, the sources said.

A money market fund recently launched by Misr Life Ins. was almost 5x oversubscribed at close this week, attracting more EGP 470 mn in inflows, Misr Capital said in a statement (pdf). The Misr Life Ins. Investment Fund had a target closing of EGP 100 mn. Managed by Misr Capital, the fund will invest in high-liquidity assets such as treasury bills and short-term corporate debt. Misr Capital is also managing a similar type of fund launched by Sarwa Life Ins. earlier this year.

Sovereign sukuk get early House nod: The House of Representatives has approved “in principle” the long-awaited Sovereign Sukuk Act in a plenary session this afternoon, paving the way for the government’s inaugural sukuk issuance once it is signed into law, according to Ahram Gate. The bill, which still needs a final vote before going to the president for ratification, sets a framework that will regulate Egypt’s sovereign sukuk issuances, including governing how the sharia-compliant debt is securitized and traded. Once ratified, the executive regulations for the bill are expected to be issued within three months. The act had received committee-level approval last month.Is our maiden sovereign sukuk issuance on the horizon? The government plans to take its first sukuk sale to the market as soon as the bill is ratified, Finance Minister Mohamed Maait said last November, though the exact timing as well as size of the planned offering is yet to be determined.A rundown on its key elements: The act will allow the government to sell ijara, mudaraba, istisnaa, murabaha, and wekala sukuk in local and international debt markets, according to a copy of the draft law seen by Enterprise in December. It will also set a term limit of 30 years on all sovereign sukuk and establish the Sovereign Sukuk Company, a joint stock company to execute and manage sales. The act’s executive regulations will cover setting up a regulatory oversight committee, clarifying how disputes between the government and sukuk holders should be handled, and will form an association to protect the rights of investors.Don’t know your ijara from your murabaha? We have a rundown on the types of sukuk here.

Misr Life Ins. Company and Misr Capital have launched a EGP 100 mn money market fund that will invest in liquid assets such as treasury bills and short-term corporate debt, Masrawy reports. Subscription to the fund, dubbed “Misr Life Ins. Investment Fund,” will be through Misr Capital and Misr Capital Fixed Income Brokerage. Misr Capital launched a similar type of fund in partnership with Sarwa Life Ins. earlier this year.The first direct flight from St. Petersburg to Cairo since 2018 landed at Cairo International Airport last night. The flight was operated by Russian carrier Nordwind airlines, with more legs expected to be added in the near future. The re-introduction of this flight route comes ahead of the anticipated resumption of direct flights from Russia to Egypt’s Red Sea destinations starting June.Other things we’re keeping an eye on this morning: The Senate has approved legislative amendments regulating the Engineering Syndicate’s elections and general assembly, which will now be shipped to the House for discussion.Hydrocarbon exploration company APA’s Western Desert assets will be consolidated into a single new concession comprising 90% of its production volumes in Egypt under an agreement between the company and the Oil Ministry.Some 22 mn properties have been registered on the government’s newly launched online property database since January as part of a push to minimize property tax evasion.

Nile Misr Healthcare is currently doing due diligence on six potential investment targets, CEO Tarek Moharram told the local press. The USD 380 mn fund, launched last week by Misr Capital and Elevate Private Equity, is looking at companies in the fields of hospitals, labs, radiology centers and private medical ins., he said, adding that it will soon acquire one of “the most important” diagnostic companies in Egypt. The companies are targeting a USD 150 mn first close for the fund during 1Q2022 and are looking to invest in Egypt, Ghana, Nigeria, Kenya and Cote d’Ivoire, they said last week.IPO on the horizon: Nile Misr Healthcare’s long-term ambition is to bring a number of its portfolio companies under the umbrella of a holding company, which would then be floated on the EGX, Moharram said.

OUR ANALYST OF THE WEEK- Ahmed Adel, head of buy-side research at Misr Capital (Linkedin).My name is Ahmed Adel and even though I started my career on the sell-side, I’ve shifted to buy-side — a move I’ve been trying to do for a while now after having more than 12 years of experience in equity research. I started my career at Naeem Holding, where I met my first mentor, Micheal Miller, who is now an investor manager at Martin Curry. I then moved to HC Securities and then Beltone Financial for five years. During my career in sell-side, I covered telecoms, healthcare, and consumers in the MENA region.I decided to move to buy-side because I wanted to be able to make decisions for my entity. I had a rich experience in sell-side and I had the privilege of seeing a lot of transactions, but I felt that I could do more than giving recommendations and waiting to see if clients would go for my calls. Buy-side is where you take the decisions while also getting the chance to cover all sectors. I try to always be selective and comprehensive while utilizing my analytic background to come up with stock selections.The best part of my job is always seeking investment alpha. I also enjoy the depth of analysis and fundamentals. I love numbers in general and modeling is a great way to put that love into my work.Meanwhile, the best part of my career was being the lead sell-side analyst for two IPOs in the market: MM Group and Ibn Sina Pharma.The worst part of my job is always having to be connected. It’s very hard to make plans and stick to them because anything can pop up suddenly and you have to drop everything to manage it.The pandemic didn’t affect our workflow much and I attribute that to the proactive team I work with. When you have a strong team, nothing will stop them from doing their work whether it's from home, from the office, or under attack — that last one might be a stretch [laughs].At Misr Capital we’ve been putting a lot of emphasis on environmental, social and governance (ESG) factors when deciding on viable investments. We use it in our valuations and scoring for companies and management has been very receptive to this change in thinking and developing. I think in Egypt in general we need to focus on the governance aspect in the near term by having independent board members and more female representation on boards. I see the country improving on the ESG fronts in the next 2-3 years as Egypt’s authorities have been supportive of the move and continue to encourage it immensely.As a father of two daughters and a brother to many sisters, I hope more focus on ESG can make the country a better place for women. I’ve seen through my family and female colleagues the challenges that face women at work and in life, and it’s important moving forward to have them well-represented and empowered on boards and in business in general.My theory of investment is viva fundamentals. I’m a big fan of Seth Klarman’s saying, “We don't have an analytical advantage, we just look in the right place.” Everyone has access to the same financials, but it's about looking in the right places and sifting through the available information to find what’s important to you.The most important thing I look at in the company is an adaptable vision and quality. The world is changing technologically and economically and firms need to be able to be flexible to it and find ways to capitalize on it while maintaining a certain quality in operations and management. During covid for example, firms had to find digital methods to offer a service or fill in gaps in their business cycle and this helped them find real value for the future.I think the fresh blood we’ll potentially see this year in Egypt’s capital markets bodes well for 2021. I also think we have a solid outlook on the macro front thanks to the government's reforms and the expected return in tourism. I think the royal mummies parade really added to the latter of those and I’m personally very proud of what I saw.What I think the market needs going forward is more sector representation and better disclosures — of course alongside the planned IPOs to go through.Watching movies is a kind of meditation for me and I like to see films from different cultures and locations as opposed to always sticking to Hollywood. The last great things I watched are an Indian movie called The White Tiger, Turkish movie Paper Lives, and a German series called Bad Banks. Other than those, my guilty pleasure is to watch cooking shows with my wife. We particularly enjoy Kitchen Wars — Manu habiby —and Hell’s Kitchen.In my freetime, I like to spend time with my daughters, wife, and parents. I’m very family oriented. With my daughters, Linda and Nelly, I like to introduce them to old games such as ‘Basra’ and Ludo and see how they react to it. At three and five years old, they’re usually into it for a while, but soon opt to go back to their more modern games. When I can, I also like to take them on trips and try to see the world from their eyes.The biggest thing the pandemic has taught me is to appreciate our life and our health. Unfortunately, I think it’s true that you only appreciate something when you don’t have it anymore. I really missed going to the office for example, something I thought wouldn’t ever happen. The EGX30 fell 1.4% at today’s close on turnover of EGP 995 mn (27.3% above the 90-day average). Foreign investors were net sellers. The index is down 5.0% YTD.In the green: AMOC (+15.1%), Fawry (+0.8%) and Credit Agricole (+0.3%).In the red: ElSewedy Electric (-7.3%), Heliopolis Housing (-4.4%) and Ibnsina Pharma (-4.1%).

EK Holding has reportedly purchased a 10% stake in Alexandria Fertilizers in a USD 50 mn transaction, according to a report in Al Mal’s print edition, which cites sources with knowledge of the transaction. EKH, which already owned a 45% stake in the company, acquired the bulk of the shares from Banque Misr’s investment arm Misr Capital, which sold its 4.16% stake for USD 14.7 mn, the sources said. EKH also raised its indirect stake in Alexandria Fertilizers by purchasing another 10% stake in Kuwait Gate Holding — one of Alexandria Fertilizers shareholders — in a USD 38.5 mn transaction. Pharos Holding executed both transactions on the OTC market.

Banque Misr is likely keeping its investment arm, Misr Capital, separate from CI Capital, in which it now holds a 90% stake, Deputy Chairman Akef El Maghraby told Al Arabiya yesterday. The state-owned lender could “integrate” the activities of the two investment arms and will likely combine some operations, including their asset management operations, with an eye to diversify Banque Misr’s non-banking financial products and underpin its growth in the sector, Maghraby said. Misr Capital has some EGP 27 bn in assets under management, while CI’s AUM currently stands at EGP 8 bn, according to Maghraby.Watch this space: Misr Capital has been active and aggressive in going after new business since it brought on an experienced management team at the end of 2018. Khalil Bawab moved over after a 10-year run with EFG Hermes to become Misr Capital’s CEO and MD, while Omar Radwan joined as chief operating officer after a long run at HC Securities. The firm has since been busy planting its flags in the asset management and securitization segments, among others, and is pressing into investment banking. Misr Capital today offers asset management, fixed-income brokerage, private equity and investment banking services and manages a portfolio of largely state-owned assets.The final steps of the acquisition: Three of CI Capital’s biggest stakeholders — CIB, Ismail Ali Al Tourki and the Mahmoud El Gammal Charity Foundation (pdfs) — transferred their combined 24.8% stake in CI Capital to Banque Misr, rounding out the EGP 3.06 bn transaction.SEPARATELY- Banque Misr could contribute EGP 25 bn to the Central Bank of Egypt’s new mortgage finance initiative, which will provide EGP 100 bn-worth of subsidized mortgages to low- and middle-income earners, El Maghraby said. The new initiative will allow would-be homeowners to tap mortgage finance at a subsidized rate of 3% and will offer a 30-year repayment period. The CBE has yet to announce which banks will dole out the funding. Subsidized mortgages, which will be offered on houses valued at up to EGP 350k, will cost the state treasury a total of EGP 120 bn, provided interest rates remain unchanged, Deputy Governor Gamal Negm told Ala Mas’ouleety’s Ahmed Moussa last night (watch, runtime: 25:50). Middle-income borrows — classified as individuals earning up to EGP 10k per month or families with a collective monthly income of up to EGP 14k — will repay the mortgages in monthly installments of up to EGP 1.7k.

Misr Capital, Banque Misr’s investment arm, has been named Egypt’s best investment bank in the 2021 edition of Global Finance’s World Best Investment Bank awards, Misr Capital said in a statement (pdf). Misr Capital currently has more than EGP 27 bn in assets under management.Orascom Construction will construct the USD 150 mn Magdi Yacoub Global Heart Center in Sixth of October City, a 300-bed facility with capacity to treat 120k people every year, the company said in a statement (pdf).Egyptian-American Laila Pence was named among Forbes’ 2021 list of Best-in-State Wealth Advisors. Pence had a chat with Al Hayah Al Youm’s Mohamed Sherdy on Tuesday (watch, runtime: 9:38).Egypt walked away with a silver medal at the 2021 International Shooting Sport Federation World Cup, after losing to Russia in the final match, according to a cabinet statement yesterday.

Banks dominate AT Lease securitization: Banks snapped up all of AT Lease’s EGP 1.1 bn securitized bond offering last week, with Suez Canal Bank coming out on top with a EGP 300 mn investment, Hapi Journal reported, citing unnamed sources. Banque Misr and its investment arm Misr Capital bought EGP 287 mn, Attijariwafa Bank EGP 200 mn, United Bank EGP 200 mn, and Bank ABC EGP 100 mn, the sources said. The leasing company closed the sale, which was part two of a larger securitization program, on Wednesday. The issuance comes as AT Lease is looking to boost its financial position and fund future expansion plans, including expanding its factoring services for SMEs. Advisors: Misr Capital acted as lead manager, financial advisor, and arranger for the issuance, and Banque Misr was custodian, according to a statement (pdf). ALC Alieldean Weshahi & Partners were legal counsel, while Baker Tilly auditor. The Middle East Credit Rating and Investors Services (Meris) rated the issuance. IN OTHER DEBT NEWS- Sarwa Life Ins. Company’s recently launched money market fund was 3x oversubscribed at its closing last week, attracting almost EGP 300 mn of subscription requests, according to a statement (pdf). The fund, managed by Misr Capital, had a target closing of EGP 100 mn. Jojoba oil producer GoGreen is in talks with the Agriculture Bank of Egypt (ABE) over a EGP 500 mn loan to finance the expansion of its Western Desert fish farm facilities at Al Moghra, the local press reports. The company is looking to tap into low interest financing supported by the Central Bank of Egypt to fund the 500-feddan expansion, GoGreen chairman Hossam Abdel Kader told the local press. A final agreement on loan terms is pending a feasibility study being conducted by the bank. Correction: 7 February 2021. A previous version of this article incorrectly referred to Sarwa Life Insurance and Misr Capital's fund as a fixed-income fund.

AT Lease has issued its second securitized bond offering worth EGP 1.09 bn after receiving the greenlight from regulators to move forward with the issuance, the company said in an EGX disclosure (pdf) yesterday. The three-tranche issuance, initially slated for 3Q2020, has seen AT Lease offer an initial 13-month EGP 267 mn bond, a 37-month, EGP 705.4 mn tranche and a four-year EGP 114.6 mn tranche. The first tranche was rated AA+ while the second and third tranches received AA and A ratings by ratings agency Meris.Advisers: Banque Misr subsidiary Misr Capital handled the issuance which was backed by Banque du Caire, Suez Canal Bank, and Attijariwafa Bank Egypt. ALC Alieldean Weshahi & Partners were counsel for the offering.Securitized debt has been all the rage recently with industry players Sarwa Capital, Palm Hills Development, CI Capital’s Corplease, GB Auto subsidiaries GB Lease and Drive Finance, Amer Group, and Talaat Moustafa Group all moving forward with their own issuances this past month.