The Central Bank of Egypt (CBE) initiated a repurchase transaction with a consortium of international banks for a total amount of $2bn with a maturity of one year. The deal was concluded under Article 10 of the CBE Law and was authorised by the CBE’s board of directors.
In a press statement, the CBE said that this financing transaction was provided by the banks against the entire amount of Egypt’s newly issued US dollar-denominated bonds, which will mature in December 2017, November 2024, and November 2028. These bonds are held by the CBE and listed on the Irish Stock Exchange, in compliance with international standards.
The statement added that the transaction bolsters the liquidity and amount of the foreign currency reserves of the CBE.
Moreover, the transaction represents a strong vote of confidence from the financial markets in the ability of Egypt to implement its current economic reform programme and steer the country along a path of strong and sustainable growth, according to the statement.
“This transaction complements a series of measures taken recently in order to unleash the vast potential of the Egyptian economy and instill confidence by normalising local market conditions and bolstering economic activity whilst shoring up foreign currency reserves,” the statement said.