EBRD lauds regulations that will make it easier for Egyptian companies to finance their working capital needs
EBRD lauds regulations that will make it easier for Egyptian companies to finance their working capital needs: The EBRD played a key role in helping develop the framework under which Egyptian companies will be able to issue short-term bonds, which the European institution refers to as short-term debt instruments (STDIs).
Unlike an STD, an STDI is something you might actually want: “STDIs are analogous to commercial paper, an important and well-established instrument in other markets. The new instruments are attractive to local issuers because they offer maturities as short as seven days and may be listed and traded on an exchange. The application and issuance process has also been simplified, giving borrowers almost instant access to market liquidity while permitting a programme of issuances lasting up to two years with a single approval. To date, the only issuer of short-term securities has been the Egyptian government, and this important change will open the market to corporate issuers for the first time,” EBRD said in a statement out overnight (pdf).
Background: The FRA set the framework for the instruments early this month; it was made official upon publication in the Official Gazette this week.