Egypt selects 5 banks to arrange next Eurobonds issuance

CAIRO – 28 December 2017: Egypt selected five banks to arrange its next dollar-denominated Eurobond issuance, Finance Minister Amr el-Garhy said Thursday.

The banks are J.P. Morgan, Morgan Stanley, Citibank, HSBC and First Abu Dhabi Bank, Garhy said.

The dollar-denominated Eurobonds will take place by the end of January 2018 and will be worth $4 billion, Garhy added.

He confirmed on the increased confidence in the Egyptian economy after the success in implementing the reform program, adding that the five banks were selected out 20 international banks that have applied to arrange the issuance.

Egypt issued $7 billion in Eurobonds sales in January and May 2017 on the global bond market, both of which were oversubscribed, according to the Ministry of Finance.

Egypt had embarked on a bold economic reform program that included the introduction of taxes, such as the Value added tax (VAT), and cutting energy subsidies.

The country has floated its currency in November 2016, after which it clinched a $12 billion loan from the International Monetary Fund (IMF).

Egypt is to receive a fourth disbursal of that loan, worth $2 billion, in June or July, the Finance Ministry said, bringing the total it has received to $8 billion. The IMF agreed this month to the third disbursal, also worth $2 billion.