Egypt is selling international bonds valued at 2 billion euros through two tranches, with maturities of eight and 12 years and yield of 4.75 and 5.624 percent.
Egypt’s Finance Minister Amr al-Garhy said that the offer received strong interest from investors. The purchase orders exceeded 7.5 billion euros with the participation of more than 350 investors in 35 countries, he said.
Garhy explained that he carried out a promotional tour from April 3-6, with the participation of Deputy Finance Minister Ahmed Kouchouk, and Khalid Abdul Rahman, Assistant Minister for Market Operations.
In a statement on Tuesday, Garhy added that he met with 80 investors from Europe and America, and some investors in fixed-income instruments. He explained that the proceeds of the offering will be directed to support the foreign currency reserve in the Central Bank of Egypt (CBE), and to support the state budget.
The economic ministerial committee said that the demand for the Egyptian bonds reflect the increasing degree of confidence of international financial institutions in the capacity and potential of the Egyptian economy, especially after the Egyptian government recently implemented a package of important structural reforms.
Egypt began implementing an International Monetary Fund (IMF) reform program in November 2016. The international lender made a deal to provide Egypt with a US$12 billion loan in exchange for wide-ranging structural economic reforms.
The reforms include a range of measures including the devaluing of the pound currency, loosening capital controls, ending energy subsidies, reforming public enterprises and overhauling monetary policy – all in a bid to restore economic stability and long-term growth.
Edited translation from Al-Masry Al-Youm
