UAE, Egypt plan $20b spending on social, economic projects

Egypt issues dollar-denominated eurobonds worth $2 billion

DUBAI, Nov 14, (RTRS): The United Arab Emirates and Egypt plan to jointly invest $20 billion in economic and social projects, under a bilateral project announced by the crown prince of Abu Dhabi Sheikh Mohammed bin Zayed alNahyan on Thursday.

Sheikh Mohammed made the announcement on Twitter during a two-day visit to the UAE by Egypt’s President Abdel Fattah elSisi.

The UAE, and Saudi Arabia, have been the main backers of Sisi since he took power after the overthrow of president Mohamed Mursi in 2013.

Abu Dhabi Development Holding Company and Egypt’s sovereign wealth fund will use the funds to establish joint strategic investment projects, specialized funds and investment tools, in a number of sectors, Egyptian presidential spokesman Bassam Rady said in a statement. He did not say how much of the $20 billion would be contributed by each country. The projects would benefit both countries but there were no more details.

After Mursi was deposed, Saudi Arabia, Kuwait and the United Arab Emirates also promised Egypt a total of $12 billion in loans, grants and fuel shipments.

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CAIRO: Egypt has issued dollar-de

nominated eurobonds worth $2 billion in three tranches to cover part of its $5 billion 2019-2020 budget, the finance ministry said in a statement on Thursday.

The issuance included $500 million of four-year bonds with a 4.55% yield, $1 billion of 12year bonds with a 7.05% yield, and $500 million of 40-year bonds

with a 8.15% yield, it said.

Subscription orders exceeded $14.5 billion within few hours of the issuance announcement, which helped lower the yields by 45 basis points compared with the initial price guidance, the ministry said.

It described the 40-year bond as “the longest international bond in

the Middle East and North Africa”.

Egypt has a difficult foreign-debt repayment schedule for the next two years and is trying to expand its investor base, extend its maturity and borrow at lower interest rates. The country’s foreign debt stood at $108.7 billion at the end of June, up 17.3% year-on-year.