Egypt to borrow $2.5bn from global markets

Egypt is planning to issue $2.5 to 3 billion-denominated Eurobonds in the global bond market during the first half of January, Egypt’s Finance Minister Amr Garhi said in a press conference on Monday.

Speaking in a press conference held in Cairo, Garhi added that the government will seek to issue another international bond of a similar value during the second half of 2017.

International bonds are debt securities issued by governments to borrow from international institutions and banks at an agreed interest rate, which deserve to be repaid, along with the original bond value, on different installments within an agreed maturity date.

Governments resort to bonds issuance to cover budget deficits, repay short-term debts, or execute planned development projects.

Garhi has recently pointed out that the bond sales could reach about $ 6 billion, depending on the investors’ appetite for purchase.

Egypt had planned to begin a road show for its initial Eurobond issuance in November but it was later delayed by some weeks due to market volatility.

“We were planning to do it by end of November, but there has been volatility since the election in the US”, he said, adding “The window is closing because by the second week of December the markets will be very quiet. So it’s either this or maybe by mid-January”.