Egypt to offer dollar-denominated T-Bonds, selects five lenders

Daily News Egypt
2 Min Read

The Ministry of Finance intends to offer new dollar-denominated Treasury Bonds (T-Bonds) in the international financial market soon, and selected five international lenders for the offering, the ministry announced on Wednesday. 

The ministry said that the offering comes to exploit most of the improvement in current economic conditions in emerging markets, and lower yield on Egyptian T-bonds in the secondary market.

Also, it attributed the reduction in yields to the increasing demand from foreign investors for Egyptian T-Bonds, which is reflected positively on reducing the cost of financing.

In September, the Egyptian Finance Ministry said that the government will approach investment banks soon to advise on a planned international bond issuance to raise between $3-7bn by June 2020.

The statement added that Citi Bank, JP Morgan, BNP Paribas, Natixis, and Standard Chartered banks have qualified as offering managers, promoters, and subscribers.

While, Al Tamimi & Company, and Dechert qualified as the international advisor for the offering.

Since 2017, Egypt returned to global bond markets in 2017, lowering its borrowing costs compared to domestic rates following the economic reform programme.

Foreign holding of Egyptian T-bills and T-bonds currently stands at about $20bn, the Minister of Finance, Mohamed Moeit, announced earlier.


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