Egypt issues $4B int’l bonds in 3 categories
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.
The statement noted that this amount is an indication of big success despite instability of the international money markets in the past period, which affected indices of developing and new markets.
It is also considered to be an evidence of the investors' growing confidence in the Egyptian national economy and the success of the economic reform program introduced by the Egyptian government.
Minister of Finance Mohamed Ma’it referred to the amount of subscriptions which amounted to $21.5 billion, adding that it led to the closure of the subscription applications very early in the half-time period for receiving the applications.
“This reflects the confidence of the international community in the reform efforts that are fully and continuously supported by the political leadership,” Ma’it stated.
Deputy Minister of Finance for Financial Policies Ahmed Kojak clarified that the collected money will be used to finance the state budget.
Kojak pointed out that these dollar bonds are a mechanism of financing and their advantage is that they help the government diversify the sources of finance to include more than just the local market; thus helping to reduce the cost and offering bonds of various tranches of five, 10 and 30 years, which lead to prolonging the average life of government debt and reduce the risk of refinancing.
The Egyptian offer attracted more than 250 international investors from all targeted markets and from all types of investors.
Ma’it announced in January that the Ministry of Finance obtained the approval of the Council of Ministers to issue international bonds and the procedures started with a value of not less than $3 billion and not more than$7 billion.
CAIRO - 13 January 2018: Ministry of Finance obtained the approval of the Council of Ministers to issue international bonds and the procedures have been started with a value of not less than $3 billion and will not exceed $ 7 billion, Minister of Finance Mohamed Ma'it said.
In October 2018, Mait launched a pan-Asian roadshow to promote its international bonds in the South Korean capital, Seoul. The promotion campaign continued in November in several important Asian markets, topped by Singapore, Malaysia, Hong Kong, China and Japan.
CAIRO - 8 October 2018: Egyptian Finance Minister Mohamed Mait launched on Sunday a pan-Asian roadshow to promote its international bonds in the South Korean capital, Seoul. The promotion campaign will continue in November in several important Asian markets, topped by Singapore, Malaysia, Hong Kong, China and Japan.