Egypt

Faisal Islamic Bank's profit down 54% in Q1 2020

The consolidated financial results of Faisal Islamic Bank of Egypt showed a 53.6% year-on-year (YoY) drop in its net profits to EGP 483.53 million in the first quarter (Q1) of 2020 from EGP 1.043 billion. Meanwhile, the bank’s revenues fell to EGP 2.63 billion in the January-March period, compared to EGP 3.22 billion in the corresponding period a year earlier. It is worth mentioning that in 2019, Faisal Islamic Bank of Egypt reported consolidated net profit of EGP 2.78 billion, up from EGP 2.56 billion in 2018, including minority shareholders’ rights.

Une deuxième émission de #sukuk se prépare en #Egypte

Sarwa Capital finalise une opération évaluée à 152,2 millions $. Ce sera la deuxième émission de ce type de produits financiers sur le marché financier égyptien après celle de Talaat Mostafa Holdings en avril 2020. Sarwa Capital est aussi en train de mener des discussions avec de potentiels arrangeurs et garants de l'opération. Pour l'heure, seules deux entreprises financières égyptiennes sont habilitées à émettre des sukuk. Il s'agit de Sarwa Capital et EFG Hermes. Celle-ci est cotée sur la Bourse du Caire.

Humania’s US$125 Million Islamic Financing Facility

Clifford Chance has advised four international development finance institutions on a US$125 million Islamic financing facility to Humania. Led by International Finance Corporation (IFC), the institutions involved in the consortium were: the European Bank for Reconstruction and Development (EBRD), Finnish Fund for Industrial Cooperation (Finnfund), and OPEC Fund for International Development (OPEC Fund). Humania is a private healthcare company within the Bait Al Batterjee Group. The financing will be used to develop greenfield general hospitals in Alexandria (Egypt), and Casablanca (Morocco).

Egyptians pay tribute to Saudi businessman Saleh Kamel

Egyptians have been paying tribute to Saudi businessman Saleh Kamel who died in Jeddah on Monday after suffering a heart attack. Members of the country’s business, political, religious, and entertainment communities joined in mourning the passing of the prominent figure. Kamel, who was the chairman and founder of the Dallah Al-Baraka Group established part of his economic empire in Egypt including Arab Radio and Television (ART), and Al-Baraka Bank. He also used the ART Institution to fund charity projects throughout Egypt. Kamel had always been a strong supporter of Egypt and in March 2015 headed a delegation of 100 businessmen and investors at a major conference in Sharm El-Sheikh aimed at boosting the Egyptian economy.

International Islamic Trade Finance Corporation extends US$100m COVID-19 Emergency Financing for purchasing wheat and sugar in favor of Egypt

The International Islamic Trade Finance Corporation (ITFC) has signed a US$100 million financing agreement with the General Authority for Supply Commodities (GASC) to cover the Egyptian Government’s commodity needs during the Corona outbreak. ITFC CEO Hani Salem Sonbol said the financing supports the importation of critical basic commodities such as wheat and sugar. The wheat policy is of strategic importance to the Egyptian Government to ensure food security for all Egyptians. Since 2018, ITFC has been supporting the Governments’ efforts through a trade finance facility benefiting the GASC, Egypt’s largest wheat purchaser.

#Egypt FRA eyes 5 #sukuk offerings in 2020

Egypt's Financial Regulatory Authority (FRA) plans for five new sukuk offerings worth EGP 5 billion this year. In early April, FRA approved issuing the first-of-kind sukuk in favor of the Arab Company for Projects and Urban Development, a subsidiary of TMG Holding (TMGH). The total value of this Islamic financing facility is estimated at EGP 2 billion. Additionally, Sarwa Capital has been granted in July 2019 the country’s first sukuk issuer license by FRA. This gives Sarwa the green light to issue Islamic bonds through its sukuk arm, Sarwa Sukuk Company.

#Egypt approves first issuance of sukuk by Talaat Mostafa subsidiary

Egypt's Financial Regulatory Authority approved the first issuance of sukuk worth 2 billion Egyptian pounds ($127 million) by a subsidiary of Talaat Mostafa Group. The sukuk, issued by the subsidiary Arab Company for Projects and Urban Development, will be available for trading and for expedited payment but will not be transferable for shares. The new sukuk period is for 57 months, up to the end of 2024. Talaat Mostafa Group is Egypt's largest listed real estate developer.

Takaful insurer gets approval for majority stake sale

Egypt’s regulators have approved the sale of 75% of Tokio Marine Egypt Family Takaful Co. for nearly 85 million Egyptian pounds ($5.4 million). Hermes Finance Group and GB Capital will each buy 37.5% of the takaful insurer. Mr Reda Abdel Moaty, FRA vice chairman, said that Cabinet approval is required under the law for investments in Egyptian insurance companies exceeding 10% of the issued shares.

Al Baraka Bank Egypt confirms its intent to launch digital bank

Al Baraka Bank Egypt is establishing a digital bank, as it decided to increase the capital to EGP 5 billion through 3 years abiding by the Central Bank of Egypt's (CBE) new act. The bank injected EGP 1.7 billion joint funding to the national projects aiming to reach EGP 5 billion in 2023, as well as it will provide in principles 100 Automated Teller Machines (ATM), targeting to reach 200 ATMs during the upcoming period.

#Egypt mulls around $7 billion international bond issuance

Egypt will approach investment banks soon to advise on a planned international bond issuance to raise between $3 billion and $7 billion by June 2020. The new offering could include Egypt’s first Panda, Samurai, Sukuk and green bonds as well as euro- and dollar-denominated bonds. Khaled Abd Elrahman, the Egyptian Deputy Minister of Finance, said that the so-called request for proposal is being prepared and will be sent to banks imminently. Egypt was able to return to global bond markets in 2017, lowering its borrowing costs overseas as domestic rates soared amid a far-reaching economic reform programme. The government is now seeking to vary its instruments and gradually move toward longer-term credit to reduce the burden of debt. Finance Minister Mohamed Maait said that foreign holdings in Egypt’s Treasury bills and bonds currently stand at about $20 billion.

ICD invests $230M in various sectors in #Egypt

Ayman el Segeny, CEO of the Islamic Corporation for the Development of the Private Sector (ICD) met Sahar Nasr, Egyptian Minister of Investment and International Cooperation. Segeny said that ICD's investment in Egypt reached $230 million, of which $75 million were invested in the food industry and $75 million in the renewable energy in Benban Power Station. Futhermore, Segeny noted that ICD participated in financing petroleum Services Company by $20 million. Both sides discussed activating the memorandum of understanding (MoU) between the organization and the Investment Ministry on the cooperation to develop Egypt's infrastructure. Nasr said that there are vast opportunities for investment in Egypt especially in the Suez Canal Development corridor, the New Administrative Capital and New Alamein.

#Egypt to get $1bln for basic goods from Islamic Bank - ministry

The International Islamic Trade Finance Corporation (ITFC) will provide Egypt with $1 billion to support the provision of basic goods. The financing is part of a $3 billion agreement with the ITFC, which is part of the Islamic Development Bank (IDB). Egypt's economy was battered after a 2011 uprising ushered in political instability that scared off tourists and foreign investors.
Earlier this week Egypt signed contracts with two global banks to hedge against fluctuating global oil prices. The investment ministry said the ITFC financing was part of a new cooperation strategy between Egypt and the IDB lasting until 2021.

Faisal Islamic Bank of #Egypt to employ women for first time

Faisal Islamic Bank of Egypt (FIBE) will start appointing women to all of its branches for the first time since the bank was established in 1979. Egyptian member of parliament Inas Abdel Halim had submitted May 31 a briefing paper to then-Prime Minister Sherif Ismail about reports whereby the FIBE does not employ women. Abdel Halim stressed that the bank is violating Article 9 of the Egyptian Constitution, which stipulates that the state shall ensure equal opportunity for all citizens. She called on both the prime minister and the governor of the Central Bank to investigate the incident. According to Sahar el-Damaty, the first female vice president of Banque Misr, FIBE and its relationship with its founders in Saudi Arabia is the main reason behind the strict rules relating to the appointment of women. It seems the FIBE decision falls within a series of societal changes both in Egypt and Saudi Arabia aimed at granting women their full rights.

Will Islamic bonds help revive #Egypt's economy?

The Egyptian government plans to issue dollar-dominated and euro-dominated sukuk over the next fiscal year. Finance Minister Mohamed Maait made the announcement, expecting that the issuance of the Sharia-compliant bonds would attract huge demand. He added that the government would introduce amendments to the existing laws to enable the issuance. On April 11, the government approved a draft law to establish a sovereign fund aimed at making the best use of state assets with a capital of 5 billion Egyptian pounds (about $279 million). The Egypt Fund will benefit several infrastructure projects, create more job opportunities and reduce the budget deficit. The Egyptian government is also planning to float shares in state-owned companies to draw more local and foreign investors to the stock market.

New #Egypt Finance Chief Looks to #Sukuk for Funds

Egypt is considering tapping the international sukuk market in the coming fiscal year, as it looks to diversify funding sources. The issuance would mark a revival of a plan shelved since 2013 when the government issued the law to pave the way for the country’s first Islamic bond. Finance Minister Mohamed Maait said that the ministry has yet to discuss how much it wants to raise from conventional bond sales in the coming fiscal year. The focus is shifting toward long term borrowing. The government is also planning on launching the first offerings of stakes in public sector companies in July or August. The initial stakes are expected to raise between 15 billion and 18 billion pounds.

Dana Gas receives $40mn from #Egyptian government

UAE based natural gas producer Dana Gas has now received almost $90mn so far this year from the North African nation.

Afreximbank taps Islamic finance to support Africa trade

The African Export-Import Bank (Afreximbank) has raised around $260 million via three Islamic finance facilities to support small- and medium-sized businesses in the region. The Egypt-based bank obtained a $100 million financing from the Islamic Corporation for the Development of the Private Sector (ICD). It also signed two financing agreements with the International Islamic Trade Finance Corporation (ITFC) worth $100 million and 50 million euros ($59.8 million) to help finance exports among African countries. Both ICD and ITFC are part of the Saudi-based Islamic Development Bank group of companies.

Top #Egyptian cleric forbids Muslims from #Bitcoin trading

The Grand Mufti of Egypt has explicitly prohibited trading in Bitcoin, explaining that it is forbidden in Islamic Sharia for the risks it holds, and its been used to fund terrorists. A Fatwa has been issued that the virtual currency should not be used to make financial transactions because it has no monetary cover by the Central Bank of Egypt (CBE). Mufti Allam remarked that Bitcoins undermine the legal system, as companies can evade taxes and not disclose their profits due to the fact that Bitcoins are untraceable. Furthermore, companies turn their attention to crypto currencies as it allows them to launder money or finance terrorist activities and engage in other fraudulent behaviors. The Mufti concluded that Bitcoin does not have a physical form and leads to fraud, therefore prohibited its use as it leads to more corruption.

Detention of Saleh Kamel does not impact Al Baraka Bank #Egypt

Ashraf Ahmed Mustafa El-Ghamrawy, CEO of Al Baraka Bank Egypt said that the bank’s activity was not impacted by the detention of the Saudi businessman Saleh Kamel. Kamel is the chairman and founder of the Dallah al Baraka Group (DBHC) which owns Al Baraka Bank Egypt. The anti-corruption committee set up by Saudi King Salman bin Abdul Aziz has recently detained a number of Saudi princes, ministers and businessmen for corruption charges. According to El-Ghamrawy, what happens with Kamel in Saudi Arabia will have no effect on the bank’s performance in Egypt. He also notified the Egyptian Stock Exchange that Kamel is not a member of the board of directors. Therefore, there is no impact on the bank.

#UAE to reopen, #Kurdistan #deal to boost #Dana #Gas

The stock markets in the United Arab Emirates look likely to trade softly as they reopen on Monday after the Eid holidays, although Abu Dhabi's Dana Gas might just rise sharply after it reached an agreement on overdue payments from the government of Kurdistan.
The markets in the UAE are the only ones open in the Gulf. Others, like Egypt, will pick up trading later this week. There is no fresh, major corporate news in the UAE except Dana's settlement, which will see Kurdistan immediately pay Dana's consortium $1 billion, including $400 million that will be used for investment in the region. Dana will receive 35 percent of the money. In addition to Dana's share of the $600 million payment, "Future benefits to Dana Gas should be much larger, given the massive resource potential of the two fields, Khor Mor and Chemchemal. Dana Gas's share of 2P reserves in the two fields amounts to close to 1 billion barrels of oil equivalent, with huge upside", said Allen Sandeep, head of research at Cairo-based Naeem Brokerage. He continuid: "Overall, we view this as a major positive development for Dana Gas."

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