Back to the complete issue
Wednesday, 22 May 2019

Egypt plans to issue infrastructure bonds in 2H2019-20

EXCLUSIVE- The government is planning to issue its first international infrastructure bonds in 2H2019-2020, two senior government officials told Enterprise. The bonds will have long maturities and their proceeds will be directed to infrastructure projects, the officials said. The government has begun talks with the China-led Asian Infrastructure Investment Bank over the issuance, which is meant to help the government to diversify its sources of finance. The government plans to borrow USD 6.9 bn from international markets in the coming fiscal year starting July, of which USD 5 bn will be in USD-denominated eurobonds. The first green bond issuance is planned for 4Q2019, the officials said.

What is an infrastructure bond? According to the World Bank (pdf), infrastructure bonds are issued with the purpose of financing infrastructure projects of public interest. Bonds issued by private sector companies are usually subject to concession contracts with the public sector (PPP). The funding is acquired through project finance, with public guarantees often involved.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.