عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Banque Misr Prepares to Sell its Shares in 13 Companies

The new branch of the Bank of Egypt in the New Administrative Capital. (The bank’s website)
The new branch of the Bank of Egypt in the New Administrative Capital. (The bank’s website)
TT
TT

Banque Misr Prepares to Sell its Shares in 13 Companies

The new branch of the Bank of Egypt in the New Administrative Capital. (The bank’s website)
The new branch of the Bank of Egypt in the New Administrative Capital. (The bank’s website)

Egypt's Banque Misr is preparing a file to exit its investments in some companies as part of a government program to reduce state ownership in the local economy.

The deals will be announced after coordination with the committee for public procurement, according to an official source who refused to be named.

The source told the Arab World News Agency that the bank is preparing to sell its shares in 13 out of 176 companies in its portfolio, adding that the companies subject to exit are profitable.

The 13 companies range between the industrial, petrochemical, and public services sectors, including medical insurance, transportation, navigation, tourism, agriculture, and food industries.

The source did not specify a timeframe for the process, noting that among the companies that will be exited include Egyptian Ethylene and Derivatives Company (Ethydco) and Alexandria Specialty Petroleum Products Company, 10 and 10.4 percent of which are owned by the bank respectively.

Last September, Sidi Kerir Petrochemicals (Sidpec) postponed a deal to acquire Ethydco fully.

The Egyptian government had announced a program to exit 32 companies and expand private sector ownership within the framework of an agreement with the International Monetary Fund (IMF) to obtain a loan worth $3 billion.

The government is preparing for a scheduled review from the IMF during the first quarter of 2024 to disburse a second tranche of the loan, a review that has been postponed since last March.

Most Viewed

 
 
Business

S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
TT
TT

S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

S&P Global Ratings anticipates that Saudi issuers will continue to tap local and international capital markets to finance projects under Saudi Arabia’s Vision 2030. The agency expects debt levels to remain manageable, with private sector debt-to-GDP ratios staying below 100% over the next 12 to 24 months.

According to S&P’s report, “Saudi Capital Market Overview: Rising Issuance Levels Are Just the Start”, Saudi companies have dominated issuance activity in recent years. Over the past five years, Saudi entities, including government-related entities, have accounted for roughly two-thirds of non-governmental US dollar-denominated issuances. However, the report predicted that banks will play an increasingly significant role in the future.

The report noted that Saudi issuers have raised over $130 billion in US dollar-denominated issuances over the last five years. This adds to $144 billion raised domestically in Saudi riyals during the same period, driven by Vision 2030 initiatives.

While the government accounts for about 60% of these issuances, the Kingdom’s Vision 2030 has created expansive opportunities in the non-oil economy and banking system, paving the way for future growth, the report underlined.

S&P highlighted the development of Saudi Arabia’s mortgage-backed securities market as a key factor to watch over the next two years. As of the end of September 2024, Saudi banks held more than $175 billion in mortgage financing, most of which carried fixed interest rates but were funded through short-term resources, primarily local deposits.

With declining interest rates, some of these mortgages could re-enter circulation, enabling banks to sell them in the secondary market without incurring losses. This would allow banks to offload mortgage financing from their balance sheets, provided legal challenges surrounding the mortgage-backed securities issuance are resolved or mitigated sufficiently to attract local and international investor interest.

According to the report, developing the mortgage-backed securities market could significantly enhance banks’ financial capacity, enabling them to better support the implementation of Vision 2030. This could occur through existing infrastructure, such as the Saudi Real Estate Refinance Company, or via direct issuances in the capital markets.