FILE - Ministry of Finance
CAIRO - 24 March 2022: The Ministry of Finance announced the return to the international bond markets, despite the repercussions of the Russian-Ukrainian crisis and the unprecedented global economic challenges it poses.
The Ministry of Finance stated Thursday that Egypt would thus be a leader in the Middle East in this field; as it is the first country to issue international bonds denominated in Japanese yen currency in Japanese markets.
According to the statement, Japanese multinational banking and financial services institution Sumitomo Mitsui Banking Corp will manage the transaction.
The yen-denominated five-year debt will target a yield of between 0.80 percent and 0.85 percent.
Minister of Finance, Mohamed Maait, affirmed that Egypt’s success in launching the first samurai bond issue in the Japanese market reflects our ability to return to the international bond markets, including those that we enter for the first time in the history of Egypt, despite the unprecedented global challenges the economies are witnessing.
He pointed out that the Egyptian issuance of samurai bonds in the Japanese market succeeded in attracting many Japanese investors, as it was very popular with them, which indicates their confidence in the solidity of the Egyptian economy and its ability to achieve its goals in light of the current global economic repercussions.
The minister added that this issuance is characterized by specifications of a special nature due to the difference of the Japanese market from other international markets, as the Japanese investor is more selective in his investment policies and more willing to invest in the debt instruments of countries with a high credit rating.
He explained that this issuance comes within the Ministry of Finance's successful plan to diversify debt instruments, issue currencies and markets, and investor segments, extend the life of the debt, reduce the cost of external debt, and then reduce the cost of financing.
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