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Sunday, 11 November 2018

Egypt will not issue EGP-denominated bonds during the next two fiscal years

EXCLUSIVE- EGP-denominated int’l bond issuance isn’t happening during the next two fiscal years: The Madbouly Cabinet is not planning to issue EGP-denominated bonds on the international market during the current or next fiscal year, a top government official tells Enterprise. A Bloomberg report from last month had claimed that an EGP-denominated bond issuance on the international market was in the cards to encourage overseas inflows and curb the cost of borrowing. Sources had said at the time that investors would purchase the bonds in USD but the principal and interest would be payable in EGP, “which means the buyer bears the risk of any fluctuation in the exchange rate.” An EGP-denominated issuance could happen at a later, more suitable time, our source said. The Finance Ministry is looking to diversify its funding with an eye to capping borrowing over the next four years at USD 20 bn.

FinMin to seek this month a manager for its upcoming eurobond issuance: The Finance Ministry will hold sometime this month a tender to select the investment bank that will manage a sale of USD 4-7 bn worth of JPY-, RMB-, and USD-denominated eurobonds it plans to issue early next year, according to the source, who did not disclose when the winning bid would be announced. Finance Minister Mohamed Maait has previously suggested the offering could go to market sometime in 1Q2019.

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