An official source at the Central Bank of Egypt (CBE) said that the crisis in the global stock markets, ongoing since the end of last week, will not affect government plans to issue new international bonds worth between $4 billion and $5 billion.
The source explained that the sharp decline in world's stock markets in recent days, in addition to the witnessed increase in US bond yields to the highest level in 30 years, will not lead to postponing the issuance of bonds according to the set timetable, or affect the bonds' return rate.
The source added that there is a growing confidence in the Egyptian economy following the implementation of the economic reform programme, which is reflected in the coverage of the Egyptian bonds issuance last year.
The source stressed that Egypt had demonstrated its commitment to fully repay its financial obligations in a timely manner, as the country managed to pay about $30 billion in debts and obligations in 2017.
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In January 2017, Egypt launched three packages of bonds through which it managed to attract $4 billion. On 10 November 2016, the ministry also launched bonds worth $4 billion in a special listing on the London Stock Exchange (LSE).
Earlier this week, Egypt’s Prime Minister Sherif Ismail discussed with Finance Minister Amr El-Garhy the international bond issuance scheduled for launch in mid-February. The new bonds will be offered on the London and Luxembourg stock exchanges.
By Mohamed Samir
