CAIRO – 4 March 2024: The African Finance Corporation (AFC) plans to support Egypt in its upcoming international bonds issuance. This support could come in the form of boosting Egypt's credit position or investing in the bonds directly, according to AFC's Executive Director and Head of the Financial Services, Sanjeev Gupta, stated during an interview with Asharq Bloomberg.
Furthermore, Gupta indicated ongoing discussions between the AFC and the Egyptian government regarding potential funding channels.
The institution is exploring various avenues to assist Egypt, with a particular focus on meeting the Central Bank's requirements for foreign currency balances. Gupta highlighted the existing swap programs with African banks as a relevant factor in this context.
Additionally, the AFC expressed its interest in investing in various sectors in Egypt, including technology, financial technology, industry, and renewable energy.
Referring to the Samurai bonds issued by Egypt in October and November, amounting to $500 million, Gupta emphasized the role of the AFC in advising Egypt's Ministry of Finance. The AFC recommended the selection of a Japanese bond to secure financing, taking advantage of the favorable interest rates prevalent in Japan.
In November 2023, Egypt successfully sold ¥75 million (Japanese Yen) worth of 5-year Samurai bonds with an average yield of 1.5 percent in the Japanese market.
In October 2023, Egypt also issued Panda Bonds denominated in Chinese yuan, worth a similar $500 million.
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