CBE agrees $3.1bn fi­nanc­ing from international banks

CBE re­paid $2bn, hon­our­ing re­pur­chase trans­ac­tion with international banks

The Daily News Egypt - - Front Page - By Hos­sam Mounir

The Cen­tral Bank of Egypt (CBE) re­paid a to­tal sum of $2bn on Thurs­day, hon­our­ing a re­pur­chase trans­ac­tion with a con­sor­tium of international banks, em­pha­sis­ing Egypt’s com­mit­ment to meet all of its li­a­bil­i­ties and ex­ter­nal debt duly.

The CBE en­tered into a new re­pur­chase trans­ac­tion on Mon­day with the same con­sor­tium of international banks namely Bar­clays Bank PLC, Cit­i­group Global Mar­kets Lim­ited, Credit Suisse AG, Lon­don Branch, Deutsche Bank AG, Lon­don Branch, HSBC Bank, HSBC Bank Mid­dle East, J.P. Mor­gan Se­cu­ri­ties, Natixis, and No­mura International, for a to­tal amount of $3.1bn and a ma­tu­rity of one year.

The to­tal amount of bids sub­mit­ted for the trans­ac­tion amounted to $4.3bn, re­flect­ing a vote of con­fi­dence by the international mar­ket in the suc­cess of the home-grown eco­nomic re­form pro­gram in the past year as well as the on­go­ing com­mit­ment demon­strated by Egyp­tian au­thor­i­ties to bol­ster­ing do­mes­tic eco­nomic and fi­nan­cial con­di­tions.

This fi­nanc­ing trans­ac­tion was pro­vided by the banks against most of the coun­try’s dol­lar-de­nom­i­nated sov­er­eign bonds with ma­tu­ri­ties of De­cem­ber 2018, November 2024, and November 2028, held by the CBE, which are listed on the Ir­ish Stock Ex­change and whose is­suance com­plies with international stan­dards.

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