Bloomberg/Sima Diab

Economy Markets

Egypt mulls around $7 billion international bond issuance

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The new offering could include Egypt’s first Panda, Samurai, Sukuk and green bonds as well as euro- and dollar-denominated bonds.

Tuesday 10, September 2019

An Egyptian finance ministry official said that the government will approach investment banks soon to advise on a planned international bond issuance to raise between $3 billion and $7 billion by June 2020, reported Bloomberg.

Khaled Abd Elrahman, the Egyptian Deputy Minister of Finance, said that the so-called request for proposal is being prepared and will be sent to banks imminently, without giving a timeline.

The government is taking advantage of lower borrowing costs amid signs the world’s major central banks may cut interest rates or deliver a fresh salvo of monetary stimulus to shore up economic growth.

Egypt wants to diversify its debt instruments and currencies, says, Mohamed Maait the Egyptian Finance Minister.

Egypt was able to return to global bond markets in 2017, lowering its borrowing costs overseas as domestic rates soared amid a far-reaching economic reform programme. The government is now seeking to vary its instruments and gradually move toward longer-term credit to reduce the burden for one of the Middle East’s most indebted countries.

Maait said that foreign holdings in Egypt’s Treasury bills and bonds currently stand at about $20 billion.

 

TAGS : Samurai bonds, international bond issuance, Panda bonds, Debt markets

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