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Thursday, 27 September 2018

Don’t expect samurai or panda bonds until 2019

**#2 EXCLUSIVE- Don’t expect samurai or panda bonds until 2019: Egypt is unlikely to issue JPY- or CNY-denominated bonds (called “samurai” and “panda” bonds in the trade) this fiscal year, a senior government source told Enterprise. The source said that the procedures for the issuance won’t be completed before next June, saying that Egypt has yet to receive the blessings from the central banks of Japan and China.

The focus for the moment is on an USD 5 bn eurobond issuance that could go to market in the coming months, our source said.

Asian roadshow to tap new pools of liquidity ahead of bond offerings: “The week after next, we will start promotional tours in the Asian markets, then Europe in preparation for issuing Eurobonds bonds,” Finance Minister Mohamed Maait said on Tuesday. While he did not specify when they would issue the bonds, Maait had previously put the window at some time between January and March 2019. Bloomberg also reported on the non-deal roadshow to drum up interest for upcoming offerings and said Egypt is in talks with Euroclear to make it easier for foreign investors to access EGP-denominated debt.

Egypt to issue sukuks next fiscal year: The government is planning to issue USD 1-2 bn in sukuks next fiscal year, the source added. The issuance will take place next year as there is currently no legislative framework that allows for it, we were told, and that legislation won’t be in place to allow an offering before the start of the FY2019-20. Egypt is one of 18 African countries that significant untapped potential in the sukuk market, Moody’s recently said.

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