Egypt yet to set details of Asian market bond issue: finance ministry

Author: 
Reuters
ID: 
1547451418730210200
Mon, 2019-01-14 07:30

CAIRO: Egypt has not set a date for issuing bonds on the Asian
market nor decided their amount and currency, the finance ministry
said on Monday, a day after two government sources said $2 billion
worth of yen-denominated papers would be offered in days.

Egypt has struggled to recover from years of turmoil after a
2011 uprising and has borrowed heavily from abroad since signing an
International Monetary Fund (IMF) loan deal in 2016.

The value of the Asian market issue would be limited because its
aim is to build a yield curve, the ministry said.

In its statement, the ministry added that it would complete a
roadshow to promote Egypt’s international bonds in February with
visits to Hong Kong, Taiwan and Gulf nations.

As part of the roadshow, Finance Minister Mohamed Maait visited
Seoul in October.

Deputy Finance Minister Ahmed Kouchouk has also been to Japan,
Singapore and China, the ministry said.

On Sunday, Maait said his ministry had received cabinet approval
for $3 billion to $7 billion worth of foreign bond offers. He did
not say what currency bonds would be sold in, though he said Egypt
was looking “to diversify currencies, products and markets to
find good financing alternatives.”

Egyptian officials have previously said Japanese yen and Chinese
yuan were two of the currencies they were considering as the nation
looks to vary from the euro and US dollar.

Maait said in December that Egypt was aiming for at least two
foreign currency bond issues in the first quarter of 2019.

Egypt’s foreign debt stood at $92.64 billion at the end of the
financial year in June.

Its borrowing requirement for the repayment of external debt is
$10.51 billion in the current financial year.

On Sunday, one government source said proceeds from a planned
issue of so-called Samurai bonds in Japanese yen would be used to
repay debts of state oil company Egyptian General Petroleum
Corp.

Main category: 

Egypt plans to issue international sovereign sukuk in 2019-2020
Source: FS – All-News-Economy
Egypt yet to set details of Asian market bond issue: finance ministry