CAIRO – 20 December 2023: The International Finance Corporation (IFC) has announced its intention to issue its first-ever Egyptian pound-denominated bonds in 2024. Sérgio Pimenta, the IFC's Regional Vice President for Africa, revealed this development during an interview with CNBC Arabia, emphasizing the institution's commitment to supporting Egypt's economic growth.
Pimenta stated that the IFC is currently collaborating with Egypt to prepare companies for the second phase of the Initial Public Offering (IPO) program. He further highlighted that the IFC can invest in the government IPO program without any conflict of interest. This partnership aims to strengthen Egypt's capital markets and promote private sector growth.
The approval for the issuance of these bonds in the local currency was granted by the Egyptian Cabinet in August 2023, following the Ministry of Finance's proposal to the IFC.
This will boost the IFC's investment portfolio in the country, fostering increased economic activity. Additionally, the availability of additional foreign currency sources will enhance Egypt's financial stability.
Moreover, the introduction of bonds denominated in Egyptian pounds will expand the range of financing solutions offered in the local currency, thereby diversifying and encouraging financing sources for the private sector within Egypt.
The IFC's decision to issue Egyptian pound-denominated bonds reflects its confidence in Egypt's economic prospects and its commitment to supporting sustainable development in the country. By facilitating access to financing and promoting investment, the IFC aims to contribute to Egypt's ongoing efforts to achieve long-term economic growth and prosperity.
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