High demand on Egypt’s Eurobonds issuance signals trust in economy: NBE official

CAIRO – 14 February 2018: Deputy Chairman of the National Bank of Egypt (NBE) Yehia Abul Fotouh said Wednesday that the huge demand on Egypt’s issuance of Eurobonds worth $4 billion signals international confidence in the Egyptian economy.

In statements to the state news agency MENA, he said that that this comes at a time when international money markets are experiencing a state of fluctuation over the past two weeks.

Egypt returned to the international bond markets on Wednesday with issuing Eurobonds worth $4 billion on three tranches; three, five and 30 years, the Finance Ministry said in a statement.

The purchase requests exceeded $12 billion in the first few hours after the issuance despite the volatility of the international stock markets, the statement said, adding that this reflects the increased interest for foreign investors in the Egyptian Economy in light of the economic reforms.

The outturn will be used to bolster the central bank’s foreign currency reserves, while the cash equivalent in Egyptian pounds will be directed to finance the activities of the state budget, the statement said.

Deputy Minister of Finance for Financial Policies Ahmed Kojak said that the Egyptian issue in the international markets has attracted more than 550 international investors from all target markets: Europe, America, Asia and the Middle East.

He added that they had received orders to buy bonds in large numbers, exceeding $500 million per investor.