Samurai Bonds
Furthermore, Gupta indicated ongoing discussions between the AFC and the Egyptian government regarding potential funding channels
Maait explained that the bond issuances reflect the country’s ability to diversify financing sources and tools, despite global economic challenges resulting from geopolitical tensions, and its eagerness to expand its base of international investors
The recent issuance is Egypt’s second, having offered its inaugural Samurai bonds back in March 2022, also issuing bonds worth $500 million which was, at the time, approximately ¥60 million
The cabinet also ratified the procedures for the issuance of sovereign and sustainable Panda bonds in the Chinese market
Samurai bonds are bonds denominated in Japanese yen, issued by foreign borrowers on the Tokyo Stock Exchange.
This will be the second time that Egypt will issue Samurai bonds, having previously issued Samurai bonds worth $500 million back in 2022, considered the first of their kind in Egypt and the Middle East
Addressing the meeting, Maait said the move aims to diversify funding sources, reduce debt servicing costs, lure new segments of foreign investors to the Egyptian market as well as tap new international bond markets.
As per the Egyptian Ministry of Finance’s announcement late in March regarding issuing Samurai bonds, Egypt would thus be a leader in the Middle East in this field, the Cabinet said on Wednesday.
