News in brief.Egypt index climbs 0.9 pct, OT rises
Egypt's benchmark index rose 0.9 percent on Monday on foreign interest in heavyweights like Orascom Telecom, which climbed 1.4 percent.
"The market was mainly led by foreign appetite and sentiment," said Mohamed Kotb, director of asset management at Naeem Financial Investment.
Shares of big cap Orascom Construction Industries surged 1.7 percent, while investment bank EFG-Hermes rose 4.8 percent.
Fellow heavyweight Commercial International Bank dipped 1.2 percent. Kotb said the stock is facing selling pressure from an institutional investor Institutional Investor
A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. .
Overall, the index closed at 6,828 points. --Reuters
Orascom will not bid for 4th French 3G license
Egypt's Orascom Telecom will not bid for France's fourth 3G mobile license, a spokeswoman for the firm said on Monday.
"It was announced today in our analyst day that OT/Weather will not be bidding for the fourth French license," the spokeswoman said in an emailed statement.
Orascom had been mentioned as a possible bidding partner for Numericable, a privately held cable television operator. --Reuters
Hokair gets LE 1.6 bln loan
Saudi Arabia's Al-Hokair Group borrowed LE 1.61 billion in a syndicated loan Syndicated Loan
A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks.
Also known as a "syndicated bank facility. to construct the Mall of Arabia This article or section contains information about expected future buildings or structures.
Some or all of this information may be speculative, and the content may change as building construction begins. , to be the largest mall in Africa and will lie over 441,000 square-meters in Sixth of October.
Total investment cost will be LE 2.92 billion.
Commercial International Bank (CIB CIB
Latin cibus (food) ) is the lead arranger Lead arranger
The senior tier of arranger , contributing around LE 659 million to the loan.
Other banks include Banque du Caire Banque du Caire, or "Bank of Cairo", is a full service bank headquartered in Cairo. The bank operates over 120 branches in Egypt. It has branches in the United Arab Emirates and representative offices in Ukraine and in Zimbabwe, as well as affiliates or subsidiaries in Saudi Arabia , Export Development Bank of Egypt, Housing and Development Bank, Bank of Alexandria The Bank of Alexandria is one of the largest banks in Egypt. It has a market share of almost 7% and had assets of 5.2 billion euros (US$6.5 billion) as of June 30, 2006. History
The loan will have an EGP-denominated portion that will be priced at 1.5-3.5 percent above the Central Bank of Egypt's corridor rate, and a USD-denominated portion that will be priced at 1.0-2.5 percent above LIBOR LIBOR
See: London Interbank Offered Rate
See London interbank offered rate (LIBOR). . --Al-Mal
Egypt's Citadel to invest $1 bln in petchem plant
Egyptian private equity company Citadel Capital is leading a consortium that plans to invest $1 billion in equity in a second-stage petrochemicals refinery near Cairo, a top company official said on Monday.
The project has a total value of around $3.5 billion, including $2.25 billion in debt, Ahmed Heikal, chairman and founder of the Cairo-based company, told Reuters on the sidelines On the sidelines
An investor who decides not to invest due to market uncertainty.
on the sidelines
Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. of a private equity conference.
Financial closing of the deal is due in February or March early 2010, he added. --Reuters
Gulf Capital to invest $500 mln in Saudi, UAE (Uninterruptible Application Error) The name given to a crash in Windows 3.0. In subsequent versions of Windows, a crash was called a "General Protection Fault," "Application Error" or "Illegal Operation." See crash in Windows and abend. , Egypt
Private equity firm Gulf Capital is looking to invest $500 million in Saudi Arabia Saudi Arabia (sä`dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. , the United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. and Egypt, the company's chief executive said on Monday.
The opportunities include a deal in the healthcare sector that would be announced soon, Chief Executive Karim El-Solh told Reuters on the sidelines of a private equity conference.
He declined to give more details, but said in general the fund targets 10 deals of about $50 million per deal.
As elsewhere in the world, private equity activity in the Middle East in 2009 has dropped significantly, Solh said. As a result, the sector sits on more than $11 billion and the number of deals is set to increase again.
"With so much dry powder Dry Powder
A slang term for cash reserves kept on hand to cover future obligations.
For example, if a venture capitalist expects bad times in the IPO markets you might hear him say something like, "we want to keep enough dry powder around to keep funding our left, regional private equity firms are under considerable pressure to close transactions," he said, adding that the crisis will eventually result in a shake-out of the industry. --Reuters
Abraaj sees investments in Saudi, Egypt, Turkey
Abraaj Capital Abraaj Capital is the leading investment firm specializing in the Middle East, North Africa, and South Asia, which is commonly referred to as the (MENASA) region.
The firm's primary strengths include private equity buyouts, strategic minority block positions in public , the Middle East's biggest private equity firm, sees investment opportunities in Saudi Arabia, Egypt and Turkey, its managing director said on Monday.
Mustafa Abdel-Wadood said at private equity conference Super Return Middle East that the firm could make investments in a range of industries including logistics, transport, consumer businesses and financial services.
"We're looking at opportunities in a lot of sectors... a lot of sectors that we think will benefit from recovery in this region," Abdel-Wadood said.
He said that in the firm's previous fund, it focused on industries that were "fairly counter-cyclical, resilient and defensive", including the healthcare and education sectors.
Abdel-Wadood was generally optimistic about the economy and said the private equity sector had "moved past the pessimistic stage."
"There's general consensus that even if we're not out of the crisis, the worst is behind us in terms of a freefall. At least we've hit somewhat of a bottom," said Abdel-Wadood.
He said Abraaj's sweet spot in terms of investment size was between $150 million and $300 million. --Reuters
40 pct ownership cap for banks
The Central Bank of Egypt
Ownership of more than 40 percent of non-financial firms is confined to these assets perverted per·vert·ed
1. Deviating from what is considered normal or correct.
2. Of, relating to, or practicing sexual perversion. to banks in repayment of bad loans.
In case of ownership exceeding 40 percent, the bank is required to record extra losses on the extra percentage of ownership. --Al-Mal
Banks coordinate loan to West Delta
Arab African Bank is organizing a syndicated loan to be granted to West Delta Electricity Company. Arab African Bank is contributing LE 350 million, Faisal Islamic Bank LE 250 million, Banque Du Caire LE 200 million, Egyptian Saudi Finance Bank LE 75 million, Al Watany Bank of Egypt LE 75 million and Egyptian Gulf Bank LE 50 million. --Al-Alam Al-Youm
PHD gets LE 567 loan
Arab Investment Bank is expected to contribute LE 40 million of the syndicated loan of LE 567 million to be given to Palm Hills Development. The syndicated loan is organized by Commercial International Bank. --Al-Mal
Cement company to apply for new license
Egyptian Cement Company-Lafarge is currently considering applying for a new cement production license in case the companies already awarded the licenses do not actually start production. --Al-Mal
Daily NewsEgypt 2009
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