Wednesday 26, September 2018 by Kudakwashe

Egypt prepares global bond issue

 

Egypt plans to issue Eurobonds worth about $5 billion in the coming months.

The Egyptian government is planning to launch Asian and European tours starting in the week after next to market international bonds.

Mohamed Maait, Egypt’s minister of finance, said that we will start promotional tours in the Asian markets, then Europe in preparation for issuing Eurobonds bonds.

This week Egypt raised $2.46 billion from the sale of eight-year and 12-year Eurobonds at 4.8 and 5.6 per cent respectively. Earlier this year in February, Egypt raised $4 billion in a dollar-denominated Eurobond sale in an effort to narrow the budget deficit and strengthen the dollar holdings.

Egypt has implemented tough reforms under a $12 billion loan programme agreed in late 2016 that involved deep cuts to energy subsidies, new taxes, and a floated currency in a bid to draw back investors who fled after its 2011 uprising, reported Reuters.

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