Egypt plans up to $7bn in international bonds in 2019-2020

Mon, 2019-09-09 11:11

CAIRO: Egypt intends to issue international bonds worth $3
billion $7 billion in the 2019-2020 financial year, Finance
Minister Mohamed Maait said on Monday.
Egypt is also interested in diversifying the currencies in which it
issues its bonds to ensure hedging within the portfolio, Maait said
during an economic conference in Cairo.
The country has borrowed heavily from abroad since a $12 billion
package was agreed. It faces a tough repayment schedule and a
rising bill for oil imports.
Issuing sukuk, green bonds, yen or yuan bonds could allow Egypt to
attract a new type of investor as a three-year IMF-backed economic
reform program agreed in late 2016 draws to a close.
Maait said Egypt’s ratio of debt to gross domestic product is on
a downward trend and should drop to 77.5 percent by the end of June
2022. The debt-to-GDP ratio was at 9025 percent in the fiscal year
that ended in June, he said.
“We would love to go for yuan and yen,” Maait said in a
separate interview on the sidelines of the Euromoney Egypt
investment conference.
“We tried last year, but there are a lot of requirements. We
couldn’t get all the requirements done. If we can do it this
year, we would love to see Egypt going to these markets.”
The ministry is also looking at issuing green bonds and sukuk,
Islamic bonds, but is not committing to a specific type of bond
issuance, Maait said.
“We are targeting something between 3 (billion dollars) as a
minimum and 7 as a maximum,” he said.
Last year, the ministry issued more than $6 billion in
international bonds.
“We may do the same this year — or lower than that or higher
than that — but within this boundary,” Maait said, without
giving more details.
He declined to give details on when any issuance would take place
nor which markets would be targeted.
Egyptian officials have previously announced their intention to
issue Islamic bonds, but the plans did not materialize. Maait said
some progress has been made on the procedures necessary to issue
bonds in yen and yuan but did not elaborate.

Main category: 

Egypt issues $4bn in foreign currency bondsEgypt aims to tap debt
markets for up to $7bn in new financial year
Source: FS – All-News-Economy
Egypt plans up to bn in international bonds in 2019-2020