Egypt: Finance Minister Mohammed Maait on Thursday said that Egypt is looking to secure new external financing ranging between US$1.5 billion and US$2 billion, including US$1 billion by issuing Samurai and Panda bonds by the end of the year.
According to Maait, the Asian Infrastructure Investment Bank (AIIB) will provide a credit guarantee of about US$230 million for Egypt’s anticipated Panda bond issuance. The comments from Maait come after the Egyptian Cabinet last month agreed to allow the finance ministry to issue new five-year Samurai bonds worth US$500 million. Although no issuance date was provided, the move follows the “success” of the first Samurai bond issuance in March 2023 and is part of the government’s efforts to diversify funding sources to cover the deficit and extend the average maturity of its debt.
Recall, the value of the first offering was US$500 million or ¥60 billion. The move also comes at a time when Egypt is grappling with a shortage of foreign currency to meet its financial obligations. In addition to Egypt’s privatisation programme, issuing these bonds is key to helping unlock FX inflows and easing some of the liquidity challenges. (ETM)