Valu’s first conventional corporate bond is split between fixed and variable rate tranches

The EGX interview is the one to learn first. We sat down with EGX Government Chairman Omar Radwan, who informed us that short-selling is nearer to dwell than the official timeline suggests. As much as six state IPOs might full inside the subsequent 12 months, and the EGX has made its case to S&P DJI. Radwan’s learn on all three is extra optimistic than the market consensus — value weighing fastidiously.

On tax: The brand new Revenue Tax Act has been shelved because the Finance Ministry pivots to a 3rd facilitation bundle as an alternative, with a fourth enforcement-focused bundle to observe. The carrot strategy is working — tax collections went up 27.5% within the final FY — so the federal government is doubling down earlier than reaching for the stick.

In metal: Eight billet licenses go to tender this August, including 2.8 mn tons of annual capability. Some downstream producers say provide is already too tight, however others disagree.

And in vitality — a USD 128 mn, six-pipeline infrastructure bundle ought to come on-line by early 2027. The most important piece is the pipeline connecting Midor to Al Hamra, which closes the nation’s Mediterranean refining loop.

***

ARE YOU MORE OF A LISTENER? Morning Drive is a 10-minute summary of right this moment’s problem crafted so that you can take pleasure in along with your morning espresso, whereas getting the children prepared for college, or driving via the morning rush. And should you prefer it, inform your pals to inform their pals. They’ll discover us on Apple, Spotify, or wherever they get their podcasts.

***

The EnterpriseAM Egypt Discussion board is again —— and we’re devoting the complete day to the singular set of questions on everybody’s thoughts: What does AI truly imply on your firm, your individuals, your economic system, your personal job — and your children’ future?

Each session on stage solutions one query: “So, what do I truly do about it?”

Be part of us on 5 October in Cairo. Seats are restricted and attendance is by invitation solely.

Request your invitation here.

Wagering on cuts

Valu is taking its maiden typical company bond to market, transferring forward with an EGP 1 bn non-public placement structured to capitalize on an anticipated central financial institution easing cycle, in response to the corporate’s EGX disclosure (pdf). That is the primary issuance of a broader typical debt program for the corporate, per the submitting.

The breakdown: The issuance is break up into two tranches — EGP 460 mn in 13-month notes at a hard and fast annual yield of 20.75% and a bigger EGP 540 mn, 36-month tranche at a variable fee tied to the CBE’s common hall fee plus a 1% margin.

Anticipated fee cuts factored in: The floating tranche accounts for 54% of the issuance and would presently carry a yield of round 20.5%, primarily based on the Central Financial institution of Egypt’s 19% deposit and 20% lending charges. That leaves barely greater than half of Valu’s new funding positioned to turn out to be cheaper if the central financial institution resumes financial easing reasonably than locking the complete issuance in at present charges.

We knew this was coming: CEO Walid Hassouna informed us last November that the corporate was making ready to faucet the traditional company bond market to diversify its funding stack away from pure securitization, bilateral services, and discounting. Whereas Hassouna initially focused an EGP 2-3 bn transaction in 1Q 2026, the EGX disclosure suggests this EGP 1 bn placement is step one in every of that bigger program.

Repricing push

Medical provide corporations are pushing the Egyptian Authority for Unified Procurement (UPA) to reprice contracts after the most recent EGP slide pushed their prices above agreed charges. The corporations are set to satisfy the authority to debate repricing provides inside the present fiscal 12 months’s price range, Chamber of Commerce’s Medical Provides Division head Mohamed Ismail Abdo tells EnterpriseAM. The UPA had beforehand promised to assessment costs however has but to behave, he provides.

The excellent news is that previous dues to the corporations have come down sharply. Arrears fell to EGP 7 bn as of April, down from a peak of round EGP 50 bn final 12 months, Abdo says. The UPA is now making two supplier-payment batches every month as it really works to clear what stays with out letting new dues accumulate.

IN CONTEXT- Abdo informed us a year ago that medical-supplies corporations had been calling on the federal government to assist settle their UPA dues, shortly after authorities sources informed us the Finance Ministry was mulling a three-year compensation plan. The federal government later disbursed EGP 14 bn as a primary tranche to medical provide corporations after elevating the UPA’s price range. The UPA had additionally cleared an identical bottleneck with drugmakers, settling 90% of pharma arrears by final Could.

Knowledge level

EGP 15.9 bn — that’s the Suez Canal Financial Zone’s (SCZone) annual income for FY 2025/26, its highest on document, in response to a cupboard statement. The highest line got here in 37% above the earlier 12 months’s EGP 11.6 bn and 51% forward of the EGP 10.5 bn price range goal. USD-denominated revenues reached USD 246 mn, accounting for 76% of the whole.

REMEMBER- SCZone Chairman Walid Gamal El Din telegraphed this milestone back in April, when he predicted whole revenues would surpass the EGP 15 bn mark by the top of the fiscal 12 months.

PSA-

WEATHER- And we’re again to mid-thirties summer time warmth in Cairo right this moment, with a excessive of 35°C and a low of 25°C, in response to our favourite climate app.

It’s additionally extra tolerable in Alexandria, with a excessive of 32°C and a low of 24°C.

The massive story overseas

Conflicting accounts over the US-Iran conflict are taking the lead right this moment, as US President Donald Trump claims that talks with Tehran are underway and that the Strait of Hormuz would imminently reopen. Iranian Overseas Ministry spokesperson Esmaeil Baghaei denied ongoing talks with Washington, stating as an alternative that Tehran is discussing delivery administration within the contested waterway with Oman.

Because the regional battle continues to pressure oil provide, Trump has chastised ExxonMobil and Chevron for reaping gigantic windfalls over rising oil costs. The vitality giants have earned as a lot as USD 318 mn per day in 2Q, a greater than threefold y-o-y bounce. Trump urged the businesses to “give a few of that again to the general public” and trim costs on the pump.

Apple issued a brand new problem to the UK authorities’s try to realize backdoor entry to encrypted person information, a push the federal government defends as important for safeguarding the general public from terrorism and critical crime. The federal government’s prior demand known as for entry to information from UK and US prospects, which triggered a diplomatic brawl between London and Washington final 12 months.

JPMorgan Chase will plug USD 750 bn into US housing via 2035 as a part of its American Dream Initiative, which goals to assemble or protect 1 mn reasonably priced housing models and assist 500k prospects purchase properties.

Visa is acquiring Israeli fraud detection startup BioCatch for USD 2.4 bn, persevering with the fee participant’s growth into cybersecurity amid a flood of AI-powered scams. Below the settlement, Visa will purchase the startup’s behavioral biometrics platform, which analyzes person interplay information to detect scammers and bots.

*** It’s Going Inexperienced day — your weekly briefing of all issues inexperienced in Egypt: EnterpriseAM’s inexperienced economic system vertical focuses every Tuesday on the enterprise of renewable vitality and sustainable practices in Egypt, all the things from photo voltaic and wind vitality via to water, waste administration, sustainable constructing practices and how one can make your enterprise greener, regardless of the sector.

In right this moment’s problem: Egypt has three biofuel initiatives producing sustainable aviation gas, however casual assortment networks are stifling progress

Associated