Who’s behind the country’s first PIPE fund?

Financial Sector Backs Egypt's First Onshore Private Investment in Public Equity Fund

The Egyptian financial sector has demonstrated strong support for the country's first onshore private investment in public equity (PIPE) fund, C3 Capital Fund 1, officially launched by CI Capital and Compass Capital. Finance has contributed EGP 250 million to this initiative, as detailed in a recent statement. The fund has successfully completed its first close, securing EGP 1.8 billion in commitments from a diverse range of investors, including institutional investors, family offices, and high-net-worth individuals, surpassing half of its EGP 3 billion target. Prominent backers also include Banque Misr, CIB, Suez Canal Bank, Misr Life Ins., and Midbank.

C3 Capital Fund 1 aims to acquire 10-33% stakes in undervalued EGX-listed companies, enabling it to secure board seats and drive short- to medium-term growth. Fund CEO Ahmed Hussein has indicated plans to invest EGP 1-1.5 billion in 4-6 EGX-listed companies within the current year.

M&A Activity: AXA Egypt Receives Extension for Delta Insurance Takeover Offer

The Financial Regulatory Authority (FRA) has granted AXA Egypt a 60-day extension to submit a mandatory offer for its planned takeover of Delta Insurance. This extension allows AXA Egypt additional time to finalize its bid, which was originally set to expire yesterday. The company had previously expressed interest in acquiring up to 100% of Delta Insurance, a subsidiary of Egypt Kuwait Holding (EKH), with plans to merge it into its Egyptian operations. Delta Insurance has also received a competing bid from Morocco’s Wafa Assurance, proposing to acquire up to 100% of the company at the same estimated valuation.

Manufacturing Sector: Hyundai Rotem and NERIC to Produce Metro Trains

Hyundai Rotem, a South Korean railway equipment manufacturer, and the National Egyptian Railway Industries Company (NERIC) are set to commence production of 40 metro trains for Cairo Metro lines 2 and 3 by mid-2025. The consortium plans to deliver the first seven trains in 2026, with a two-year warranty and eight years of maintenance. This initiative follows a USD 656 million agreement signed in 2022, aimed at localizing railcar manufacturing in Egypt.

Electric Vehicles: INDE to Produce Electric Cargo Tricycles

Engineering Industrial Group (INDE) plans to begin producing electric cargo tricycles this year. The company aims to manufacture at least 2,000 tricycles annually, with a local component ratio exceeding 65%, for both domestic and export markets. INDE has begun promoting its model in African markets and is upgrading its production lines to support this expansion.

SME Development: EBRD Launches SME Support Program

The European Bank for Reconstruction and Development (EBRD) has launched the SME National Champions Program in collaboration with the Central Bank of Egypt, Export Development Bank (EBank), and other local financial institutions. The program aims to accelerate the growth of high-potential SMEs by providing training, mentoring, and networking opportunities. It will also leverage EBank’s Export Club program to facilitate market expansion for these businesses.