Egypt issues first 3-year panda bonds worth 3.5B yuan

CAIRO - 16 October 2023: Egypt has successfully issued panda bonds worth 3.5-billion-yuan equivalent to almost $500 million in the Chinese market.

In statement by the Egyptian Minister of Finance, Mohamed Maait, the Ministry managed to secure the issuance at a competitively low pricing, offering a favorable annual return of 3.5% over a three-year period.

The issuance marks a significant step for Egypt in diversifying its investor base and attracting foreign capital to support its ambitious sustainable development initiatives.

Maait emphasized that credit guarantee is provided by internationally esteemed development banks, namely the Asian Infrastructure Investment Bank and the African Development Bank. These institutions have high credit ratings, adding an extra layer of credibility and attractiveness to the bonds.

The panda bonds already gained a lot of interest from Chinese investors that resulted in the bonds being oversubscribed.

Earlier this week, Minister Maait recently reiterated Egypt's commitment to settling its external debt obligations in the coming years through leveraging alternative financial instruments and tapping into various markets to secure additional financing. These tools include samurai bonds, sukuk, green bonds, panda bonds, as well as the Initial Public Offering (IPO) program.