international bonds
"We found a good opportunity at a low cost and a long term that provided access to debt instruments in hard currency, which would help improve the debt structure."
These bonds will also provide the required financing to deal with the crisis and repercussions of the Coronavirus pandemic, financing financial stimulus initiatives and the needs of the health sector, as well as financing social protection and human development programs.
Subscription orders exceeded $14.5 billion within few hours of the issuance announcement, which oversubscribed the value of the offer by seven times: The ministry.
Five international investment banks were qualified to promote the new offering of the dollar-dominated international bonds in global financial markets.
Ma’it added that his country is interested in offering bonds in Chinese yuan.
Egypt postponed the bond offering in 2018 after the emerging markets' crisis.
The issuances were planned to take place in the current fiscal year but were postponed to give the government time to comply with Euroclear regulatory requirements.
The statement noted that Egypt issued 6-year bonds worth €750 million, maturing on April 11, 2025 in addition to 12-year bonds at a value of €1.25 billion, maturing on April 11, 2031.
Egypt raised the volume of its international eurobonds program to $30 billion from $20 billion, according to the Luxembourg Stock Exchange’s bulletin.
The dollar-denominated bonds come with maturities of five, 10 and 30 years in a sale and will be offered at high revenues, as the subscriptions exceeded $21.5 billion.
He pointed out that the budget for the next fiscal year 2019/2020 aims to achieve a total deficit of 7 percent of GDP, to fall to 5 percent in fiscal year 20/21 and 21/22.
Minister of Finance Mohamed Ma’it announced that Egypt will receive the fifth tranche of the International Monetary Fund’s (IMF) loan in December.
Egypt also takes into consideration issuing Samurai and Panda bonds during the upcoming 12 months.
The crash of the global stock markets since the end of the last week will not affect Egypt’s program to issue international bonds worth $4-5 billion.
Ministry of Finance is expected to start within days promoting the launch of $4 billion international bonds
Egypt will pump 2 to 4 billion dollars in international bonds during the first quarter of 2018, Finance Minister Amr Al Garhy said on Tuesday.
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