Egypt’s business digest Nov. 9: Egypt to target $2-2.5 bln in roadshow this month- Finance Minister
Minister of Finance: Amr al Garhy
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Egypt to target $2-2.5 bln in roadshow this month- Finance Minister

Egypt’s finance ministry will set the week of Nov. 23 as a tentative date for beginning a Eurobond roadshow with a target size of $2-2.5 billion, Finance Minister Amr El-Garhy was quoted as saying in a research note by EFG-Hermes.

El-Garhy, who was speaking at a conference call late on Tuesday, said the bond will help bridge a projected funding gap of $32-34 billion over the coming three years.

Egypt also expects to receive $2.7 billion in aid from the International Monetary Fund as early as next week, part of a $12 billion loan package to help Egypt avert an economic crisis and halt a slide in its newly floated currency.

Egypt has been struggling to attract hard currency and revive its economy since a 2011 uprising that drove away tourists and foreign investors. Last week it floated the pound and reactivated its interbank trading market.

 

EGX rises 1% in mid-session

The Egyptian Exchange (EGX) gained 100 points by in the Wednesday mid-session due to foreign purchases, Youm7 reported.

The main benchmark index EGX100 rose 1 percent to reach of 10,197 points, while the small and mid-cap index EGX70 went up 1.97 percent reaching 388.5 points.

Similarly, the broader index EGX100 added 2.93 percent.

 

UAE’s Dana Gas to review Egypt investment if not repaid dues

Dana Gas will review its 2017 investment plans for Egypt if the North African country doesn’t repay the full amount it owes the United Arab Emirates-based energy firm by the end of the year, its chief executive said on Wednesday.

Patrick Allman-Ward was speaking after the firm swung to a profit in the third quarter, halting a run of poor earnings performances, as it benefited from interest contributions on crude receivables from the Kurdistan region of Iraq.

Dana has been hamstrung in recent quarters as it awaits receivables owed in both Egypt and Iraqi Kurdistan, following political and economic turbulence in both places which have delayed payments.

As of Sept. 30, the amount owed by Egypt was $242 million, up from $221 million at the end of 2015. Dana’s share of owed receivables from the Kurdistan Regional Government was $722 million, down marginally on $727 million at the end of 2015.

However, Egypt is hoping to secure $12 billion in aid from the International Monetary Fund (IMF) as part of a series of bilateral fundraisings and economic reforms – most notably the free float of the Egyptian pound – aimed at revitalising its economy.

Part of the IMF loan will be distributed to the petroleum sector to meet outstanding debts, Allman-Ward told reporters on a conference call, citing conversations the firm had held with Egyptian officials.

“If it doesn’t happen (the payment), in keeping with our long-standing policy of balancing collections for investment, we would be forced to review how that balance can be maintained,” he said.

 

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