The US dollar bond yields in Egypt have jumped this year, causing the cost of borrowing to reach its lowest level since 2015, Bloomberg said.
The agency said on Monday that the yield of dollar bonds in 2017 resulted in some credit rating agencies lifting the risk of the Egyptian market, like Moody’s which raised Egypt’s debt rating to B2 in the past three months.
The IMF loan to Egypt and the Fund’s support for the economic reform policies adopted by President Abdel Fattah al-Sisi were among the factors that motivated foreigners to buy dollar bonds, Bloomberg said.
Bloomberg quoted Anthony Symond, an emerging market investment analyst at Aberdeen Asset Management, as saying that Egypt has performed well for securities trading thanks to its positive economic reforms, the IMF’s help and an enthusiastic outlook for emerging markets.
If the Egyptian government continues to boost performance without weakening its plans, it is likely to improve its credit rating in six to 12 months, he said.
Edited translation from Al-Masry Al-Youm
