Back to the complete issue
Wednesday, 18 November 2020

Egyptian bonds won’t be “Euroclearable” for at least another year.

EXCLUSIVE- In other debt news, don’t expect Egypt’s sovereign debt to be “Euroclearable” for at least another year: Egypt expects to meet the terms and conditions to allow its local debt issuances to be cleared with Euroclear in a year’s time, Mohamed Hegazy, head of the Finance Ministry’s debt management unit, told us. Progress is being made to meet the terms and conditions of the agreement signed with the clearing house in 2019, but the process itself is lengthy and proceedings were slowed down by the covid-19 pandemic, Hegazy said. Hegazy didn’t specify what the terms Egypt needs to meet are, noting only that they span many areas, including “technical, logistical, and administrative.”

BACKGROUND: The move is designed to make Egyptian debt more accessible to foreign investors, who can currently only access the debt market through a few local banks licensed to operate as primary dealers.

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. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; 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; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.