Pre-Trading Thoughts

Egypt successfully closed its maiden Samurai bond issuance, selling USD500 million of the JPY-denominated bonds, with a maturity of five years and a coupon rate of 0.85%Expectations indicate that the fuel pricing committee will meet before the end of March, to determine the new prices for gasoline and dieselPrime Minister has notified ministers, governors, and state officials that in April they will need to review their budgets and cut costs where necessary; Any new projects that have not yet been implemented and that require USD-based payments will be postponedMinister of Finance said that the new program with the IMF will not involve austerity measures for EgyptiansEgypt won’t be tapping the international wheat market with new tenders before mid-May, after having received all backlog of orders of Russian wheatCrude prices rose more than 11% to over USD120 a barrel, as traders reconciled the impact of a missile attack on an oil distribution facility in KSA with a possible release of oil reserves by USAHRHO 4Q21 group attributable net profit came in strong recording EGP402 million (+13% q/q, -14% y/y) bringing FY21 bottom line to EGP1,456 million (+12% y/y) where the IB represented 74% of the bottom line, NBFI represented 24% and aiBank represented 3%; Stock is trading at P/E22 11.0x and P/B22 1.1xPHDC closed its Sukuk issuance of EGP3.25 billion with a maximum tenor of ten years, to finance construction works in BadyaAfter managing PHDC's EGP3.5 bn Sukuk issuance, CNFN is also planning to issue Sukuk worth EGP5-6 bn before the end of 2022Ministry of Tourism is studying requests to postpone the required increase in hotel price minimum levels, in light of current low occupancy rates