Egypt plans $2b in Samu­rai bonds

Viet Nam News - - MARKETS -

CAIRO — Egypt plans to is­sue US$2 bil­lion worth of Ja­pa­nese yen- de­nom­i­nated bonds this week, two gov­ern­ment sources said.

Pro­ceeds from the is­sue of so-called Samu­rai bonds will be used to re­pay debts of state oil com­pany Egyp­tian Gen­eral Pe­tro­leum Corp (EGPC), ac­cord­ing to the sources, speak­ing on con­di­tion of anonymity.

Egypt has strug­gled to re­cover from years of tur­moil after the 2011 pro-democ­racy upris­ing, and has bor­rowed heav­ily from abroad since it be­gan an eco­nomic re­form pro­gramme backed by the In­ter­na­tional Mon­e­tary Fund ( IMF) in late 2016.

It raised two bil­lion eu­ros in bonds in April 2018, its first is­sue in the sin­gle cur­rency.

Fi­nance Min­is­ter Mo­hamed Maait said in De­cem­ber that Egypt was aim­ing for at least two for­eign cur­rency bond is­sues in the first quar­ter of 2019, with­out giv­ing the size of the planned of­fer.

Ear­lier, he said Egypt was tar­get­ing $5 bil­lion in for­eign cur­rency bonds and that the fig­ure was sub­ject to change.

Egyp­tian of­fi­cials have pre­vi­ously said Ja­pa­nese yen and Chi­nese yuan were two of the cur­ren­cies they were con­sid­er­ing as the coun­try looks to sell debt in cur­ren­cies other than the euro and US dol­lar.

Ahead of the ex­pected bond is­sue, Deputy Fi­nance Min­is­ter Ahmed Kou­chouk went to Ja­pan last week as part of a pro­mo­tional road­show that also in­cludes Sin­ga­pore, one of the sources said.

Nei­ther Maait nor Kou­chouk re­sponded to re­quests for com­ment.

Egypt’s for­eign debt stood at $92.64 bil­lion at the end of the fi­nan­cial year in June. Its bor­row­ing re­quire­ment for the re­pay­ment of ex­ter­nal debt is $10.51 bil­lion in the cur­rent fi­nan­cial year. — REUTERS

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