Egypt’s dollar-denominated notes due in 2047 were trading above 80 cents on the dollar as of Friday, the highest level since 2022, according to data compiled by the international news outlet
Egypt is looking to get back into the international bond market, with intentions to issue $3 billion in Eurobonds and other debt instruments sometime this fiscal year, explained Minister of Finance Ahmed Kouchouk during his visit to London last week, according to Bloomberg.
Kouchouk’s meetings were closed to the press, however, sources speaking to Bloomberg shared that the minister told foreign investors that Egypt plans to sell around $3 billion of external debt in different tranches but did not disclose how the debt will be distributed through which instruments.
Other possible debt issuance instruments could be Islamic bonds (Sukuk), as well as bonds supported by guarantees from international financial institutions like the IMF and the BRICS New Development Bank to reduce interest rates.
Egypt’s last Eurobond issuance was back in 2021 when it joined “a rush of emerging-market governments taking advantage of low borrowing costs before the U.S. Federal Reserve started tapering its pandemic stimulus,” explained Bloomberg. At the time, the Ministry of Finance sold $6.5 billion in bonds in 2 tranches.
Egypt’s dollar-denominated notes due in 2047 were trading above 80 cents on the dollar as of Friday, the highest level since 2022, according to data compiled by the international news outlet.
This is not the first time that Kouchouk has mentioned diversifying debt instruments to reduce debt costs, with the minister telling media in August that the finance ministry was looking into expanding its debt instruments including treasury bonds, green bonds, and Sukuk.
