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Wednesday, 17 October 2018

Gov’t to help resolve issues by Korean companies to draw investors to the eurobond issuance

EXCLUSIVE- Gov’t looks to keep Korean companies happy as it drums up Asian interest in eurobond issuance: The Finance Ministry is forming a working group with the Korean embassy to resolve any outstanding concerns of Korean companies operating here, a senior government official tells us. The move comes as the Finance Ministry looks to address any lingering hiccups in a key trade and investment relationship as it tests Asian appetite for an upcoming USD 5 bn eurobond issuance, the source said. Finance Minister Mohamed Maait has reportedly met with Seoul’s ambassador to Cairo multiple times over the past few weeks to get a tally of some of the issues South Korean companies face.

The move highlights the pressure the government is feeling to ensure successful bond and stock issuances over the coming months in the midst of the emerging markets selloff. Some analysts are seeing the 11% drop in Sarwa Capital’s shares on its opening day of trading and the ever-rising yields on government bond issuances as a sign that Egyptian capital markets are feeling the strain of the selloff.

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