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Monday, 18 July 2016

Gov’t testing the market for a eurobond issuance

Finance Ministry in talks with international investment banks over eurobond issuance: The finance ministry is discussing with investment banks including HSBC, Citibank, and Standard Chartered issuing USD-denominated bonds in the international market, a source told Al Borsa. The ministry is set to appoint two banks to manage the issuance, but is for now looking to gauge the interest rate and the optimal timing for the issuance, which Finance Minister Amr El Garhy had hinted could be in September or October. The source added the government is looking to secure a financial guarantee from an Arab country, which would effectively lower the interest rate Egypt would have to pay for its borrowing and to also finalize an agreement with the IMF. The government is weighing issuing the bonds in Ireland or Luxembourg, he added.

Meanwhile, the Finance Ministry is expected to issue EGP 3 bn in treasury bonds today, Youm7 reports. EGP 2.5 bn-worth of five-year bonds will be issued along with EGP 500 mn ten-year bonds.

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