Rédaction Africa Links 24 with Egypt Independent
Published on 2024-02-02 05:10:38
Egypt’s Minister of Finance, Mohamed Maait, recently announced that Egypt is exploring the possibility of issuing bonds in various markets, including the Gulf for the first time. In an interview with the United Arab Emirates News Agency (WAM), Maait stated that the process of issuing bonds in the Gulf markets will require extensive effort and coordination with local and international consultants, as well as the Gulf Financial Markets Committee.
Egypt is also considering the issuance of bonds in Indian rupees and Hong Kong dollars as part of the Ministry of Finance’s strategy to diversify sources and tools of financing, currencies, and issue markets. The aim is to expand the base and segments of international investors, including those from Japan, China, green bonds, and sovereign sukuks.
The Ministry of Finance made a significant announcement in a statement last Thursday, declaring Egypt as the first country in the Middle East to issue international bonds denominated in Japanese yen in the Japanese market. In March 2022, Egypt successfully issued samurai bonds in the Japanese market, totaling 60 billion Japanese yen, which is equivalent to approximately US$500 million.
Minister Maait highlighted that the issuance of these bonds aligns with the Ministry of Finance’s overall plan to expand debt instruments, diversify issue currencies, issue markets, and investor segments. Additionally, the plan aims to extend the life of debt and reduce the costs associated with external debt and financing.
The move to issue bonds in various global markets signals Egypt’s intention to access a wider investor base and diversify its sources of financing. By tapping into markets in the Gulf, Asia, and beyond, Egypt aims to secure alternative avenues for funding its economic development initiatives.
The decision to explore bond issuance in Indian rupees and Hong Kong dollars, alongside the successful issuance of samurai bonds, demonstrates Egypt’s commitment to leveraging international markets for raising capital. This strategy not only broadens Egypt’s access to diverse investor groups but also enables the country to reduce its reliance on traditional sources of financing.
Furthermore, Egypt’s focus on green bonds and sovereign sukuks reflects its dedication to sustainable and ethical investment opportunities. By prioritizing these types of financial instruments, Egypt is not only advancing its own economic development goals but also contributing to global sustainability efforts.
Overall, Egypt’s venture into international bond issuance in various markets underscores the country’s proactive approach to strengthening its financial position and capitalizing on global investment opportunities. As the Ministry of Finance continues to expand its debt instruments and diversify its funding sources, Egypt is positioning itself as an attractive investment destination for both regional and international investors.
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