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Tuesday, 1 June 2021

FinMin will not be selling USD 2-3 bn in eurobonds this month

FACT CHECK- The Finance Ministry has denied a CNBC Arabia report that it is planning a fresh sale of eurobonds soon. The report had quoted banking sources saying that ministry officials are in talks with debt investors to raise between USD 2-3 bn on the international debt market before the state’s current fiscal year, which draws to a close on 30 June. The sources claimed the sale would come in two tranches with medium- and long-term maturities, and would be completed in the next two weeks — or by the end of June at the latest.

The problem is: It’s not true, says Finance Minister Mohamed Maait, who told us this afternoon that he does not plan to tap the global debt market before the end of this fiscal year.

That’s consistent with his previous position: Maait had previously ruled out new eurobond sales until after the end of he state’s current fiscal year. The state budget gives the government license to borrow up to USD 7 bn through international debt instruments, and the ministry has only used a little over half in the ongoing fiscal year when it sold USD 3.75 bn in USD-denominated eurobonds last February to plug in the fiscal deficit.

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