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Sunday, 16 September 2018

FinMin mulls tapping Asian liquidity with issuance of JPY-, CNY-denominated bonds

**#1 FinMin mulls tapping Asian liquidity with issuance of JPY-, CNY-denominated bonds: The Finance Ministry appears to have revived plans to hold a foreign currency-denominated bond issuance, according to remarks by Finance Minister Mohamed Maait in an interview with state-owned daily Al Ahram. The Finance Ministry had earlier suggested it may back away from FX-denominated issuances as the global selloff in emerging markets assets prompted concerns about Egypt’s foreign debt position. The Madbouly government had said this summer that it would revisit the bond issuance this fall and has since made debt-control a key fiscal policy.

Ministry dusts off plan for JPY- and CNY-denominated bonds: The ministry appears to be reviving a plan to issue international bonds in the Japanese and / or Chinese currencies. Maait suggested Asian markets are liquid and would have appetite for Egyptian issuances. The plan was first proposed in January 2017, with sources saying at the time saying the ministry had reached out to the Japanese Bank for International Cooperation for a guarantee on JPY-denominated bonds.

Roadshow in the GCC for longer tenor bonds: Maait also hinted that the ministry could be taking a longer-tenor bond offering to the Gulf Cooperation Council markets. He implied that the ministry was planning a road show there, though he gave no details on the timing. Issuing longer tenor bonds is a key plank of the government’s debt control strategy.

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