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Egypt to initiate IPO programme under IMF-backed loan deal in March

Egypt intends to initiate the first stage of the IPO programme under its new loan agreement with the IMF in march.
09.02.23 | Source: ahram online

Under the IMF-backed $3 billion programme, the IMF scheduled the first review to be conducted by mid-March, paving the way for Egypt to receive the second tranche of the loan worth $347 million by end-March once the fund approves the review results.

The source told Ahram Online that the government intends to offer minor stakes in a number of state-owned companies under the IPO programme, which will not exceed 25 percent of each offered company.

He added that companies in the energy, oil, fintech, and banking sectors are likely to be offered in March for local, Arab, and foreign investors.

Egypt told the IMF it will secure between $2 billion and $2.5 billion in finances from selling state-owned assets as part of other funds the government commits to obtain in order to finance the funding gap Egypt would experience over the duration of the programme (four years), estimated at a total $17 billion.

Egypt pledged to secure $2.6 billion from the World Bank through FY2025/26, $400 million from the Asian Infrastructure Investment Bank, $300 million from the African Development Bank, $600 million from the Arab Monetary Fund through FY2023/2024, $1 billion from the China Development Bank, and $8.6 billion from the sale of state-owned assets.