Egypt begins marketing “dollar bonds” in 3 tranches


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The document issued by one of the banks arranged for the marketing process of “bonds” to Egypt showed that the government began marketing dollar bonds in 3 tranches of the two, each of which is of standard size (ie the last value and duration of the bonds).

The first indicative price for five-year bonds reached 4.375% for five years, 6.25% for ten years, and 7.875% for 40 years, according to the “document”.

The deal is being arranged by Citibank, First Abu Dhabi Bank, Goldman Sachs International and H. S. B. C and J. Morgan and Standard Chartered.

Well-informed government sources said that there are articles in the law linking the state’s general budget that allow the Ministry of Finance to cover the budget deficit by offering debt instruments with a maximum value of $ 7 billion in the local or international market, and this does not necessarily mean using the total value, as it is possible to use part of it.

Sami Khellaf, the former assistant minister of finance for public debt management, said that the government tends to offer dollar bonds with different time limits during the current year, within the framework of the state’s general budget deficit, paying and covering the dues due for loans and foreign debts, and replacing and renewing the expired issues.

In exclusive statements to Al-Masry Al-Youm, Khalaf added that the estimation of requests and the timeframe for issuance depends on the requests of foreign investors, referring to the issuance of green bonds for the first time last November, about $ 750 million in international markets. He stressed that Egypt will not stop borrowing from abroad as long as there is an internal development that needs more financing, whether by offering various issues of debt instruments – bonds of various kinds, sukuk – or through direct borrowing from international financial and financing institutions such as the International Monetary Fund, the World Bank and other bodies. .

He continued, “The total value of the issue is divided among the foreign investors participating in the offering, according to the time periods and segments.”

It is reported that Mohamed Maait, Minister of Finance, said in a recent interview with Bloomberg that Egypt is also planning to issue Islamic sovereign sukuk for the first time in 2021.

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