By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Gold prices drop 1% globally due to measure to contain SVB crisis: Gold Bullion
    Gold prices drop 1% globally due to measure to contain SVB crisis: Gold Bullion
    March 28, 2023
    3.388 million tonnes of fodder worth $1.671bn released from ports in last 6 months: Agriculture Minister
    3.388 million tonnes of fodder worth $1.671bn released from ports in last 6 months: Agriculture Minister
    March 28, 2023
    New salary increase for public employees effective as of 13 April: Finance Minister
    New salary increase for public employees effective as of 13 April: Finance Minister
    March 28, 2023
    Transitional Committee of COP27 holds 1st meeting on ‘Loss and Damage Fund’ in Luxor
    Transitional Committee of COP27 holds 1st meeting on ‘Loss and Damage Fund’ in Luxor
    March 28, 2023
    Huawei, Elsewedy Electric sign MoU in solar energy, EV charging
    Huawei, Elsewedy Electric sign MoU in solar energy, EV charging 
    March 28, 2023
  • Politics
    PoliticsShow More
    Libyan parties agree to unify all state institutions: UN
    Libyan parties agree to unify all state institutions: UN
    March 28, 2023
    Health Ministry to launch campaign to detect chest, lung diseases nationwide
    Health Ministry to launch campaign to detect chest, lung diseases nationwide
    March 28, 2023
    National Dialogue Board of Trustees to resume meetings on 3 May 
    National Dialogue Board of Trustees to resume meetings on 3 May 
    March 28, 2023
    Germany has delivered Leopard 2 tanks to Ukraine: Scholz
    Ukraine gets first batch of Leopard 2 tanks from Germany
    March 28, 2023
    China’s president Xi met with the King of Saudi Arabia Salman bin Abdulaziz Al-Saud in 2017. Reuters/Alamy
    China’s latest diplomatic move will extend its trade, energy, financial and maritime power
    March 27, 2023
  • Interviews
    InterviewsShow More
    Developers have to offer innovative products, state should provide more facilities to stimulate industry: Kareem Mamoun
    Developers have to offer innovative products, state should provide more facilities to stimulate industry: Kareem Mamoun
    March 27, 2023
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Egypt offers international bonds worth $3.75bn in 3 tranches
Share
Notification
Latest News
Gold prices drop 1% globally due to measure to contain SVB crisis: Gold Bullion
Gold prices drop 1% globally due to measure to contain SVB crisis: Gold Bullion
Business
3.388 million tonnes of fodder worth $1.671bn released from ports in last 6 months: Agriculture Minister
3.388 million tonnes of fodder worth $1.671bn released from ports in last 6 months: Agriculture Minister
Business
New salary increase for public employees effective as of 13 April: Finance Minister
New salary increase for public employees effective as of 13 April: Finance Minister
Business
Transitional Committee of COP27 holds 1st meeting on ‘Loss and Damage Fund’ in Luxor
Transitional Committee of COP27 holds 1st meeting on ‘Loss and Damage Fund’ in Luxor
Business
Huawei, Elsewedy Electric sign MoU in solar energy, EV charging
Huawei, Elsewedy Electric sign MoU in solar energy, EV charging 
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Economy > Egypt offers international bonds worth $3.75bn in 3 tranches
EconomyEgypt

Egypt offers international bonds worth $3.75bn in 3 tranches

Hossam Mounir
Last updated: 2021/02/09 at 5:23 PM
By Hossam Mounir 7 Min Read
Share
Egypt’s Finance Minister Mohamed Maait has unveiled some of the new tax incentives included in the Micro, Small and Medium Enterprises (SMEs) Development Law.
Egypt’s Finance Minister Mohamed Maait has unveiled some of the new tax incentives included in the Micro, Small and Medium Enterprises (SMEs) Development Law.
SHARE

Egypt’s Ministry of Finance has successfully returned to the international bond market despite the uncertainty in global financial markets caused by the novel coronavirus (COVID-19) pandemic.

The ministry has successfully implemented the issuance of international bonds worth $3.75bn in three tranches, covering terms of 5, 10, and 40 years, with values ​​of $750m, $1.5bn, and $1.5bn, respectively.

In a statement, the Ministry of Finance said that the offering witnessed strong and increasing purchase requests by foreign investors. The volume of subscription applications from these investors reached $16.5bn, before the banks promoting the offering announced the reduction of the advertised indicative returns prices on bonds at the beginning of the offering.

This came as a result of strong buying orders from a large number of large international investors in international bonds.

Minister of Finance Mohamed Maait confirmed that the significant and increasing demand for Egyptian international bonds represents a coverage ratio of up to 4.4 times the value of the offering.

This has contributed to lowering interest rates to less than previous issuances that took place during the past few years. Moreover, the interest rates achieved are significantly lower than the interest rates recently achieved by many countries with similar credit ratings, and countries with a higher credit rating than Egypt, in some cases.

This confirms the increasing confidence of investors in the capabilities and potential of the Egyptian economy, due to the continuous good results achieved over the past years.

The success of this offering provides additional foreign exchange resources for the country, whilst also providing financial resources that contribute to financing the needs of budgetary bodies at low prices.

Maait said that Egypt’s successful return to international markets, despite the challenges, reflects investors’ confidence in the capabilities and performance of the Egyptian economy.

Deputy Minister of Finance for Financial Policies, Ahmed Kouchouk, said that the strong interest in offering Egyptian international bonds has enabled the country to successfully issue international bonds of the required volume. It also achieves the lowest possible interest rate on the offered international bonds.

He noted that the offering witnessed more than 400 investors apply to buy and subscribe to Egyptian international bonds, of whom 40 new investors subscribed to such bonds for the first time.

This is a continuation of the Ministry of Finance’s approach, which aims to expand and diversify the investor base of Egyptian international bonds.

Furthermore, purchase orders came in a wide variety that reflects the desire of a large number of investors from all geographical regions of the world, including the United States, Europe, Asia, the Middle East and Africa. This has allowed a strong and diversified volume of applications that has eventually helped the Ministry of Finance to reduce interest rates on the bonds offered by 37.5 basis points for the three tranches, compared to the indicative prices announced at the beginning of the offering process.

The issuance was also made without adding a new issue bonus to the interest rates issued for the three tranches. In fact, the interest rates achieved on bonds with maturities of five and 10 years were lower than the prevailing prices at the secondary market before the offering.

It is a very good indicator which reflects the investors’ desire to participate strongly in the offering and invest in Egyptian international bonds.

He explained that the return on five-year bonds amounted to 3.875% with an opening return of 4.25% declared to investors. At the same time, a 5.875% return was placed on the 10-year bonds with an opening return of 6.25%, and the return for 40-year bonds stood at 7.50% with an opening return of 7.875%.

Deputy Minister of Finance for Financial Policies, Ahmed Kouchouk, said that the strong interest in offering Egyptian international bonds has enabled the country to successfully issue international bonds of the required volume. It also achieves the lowest possible interest rate on the offered international bonds.

He noted that the offering witnessed more than 400 investors apply to buy and subscribe to Egyptian international bonds, of whom 40 new investors subscribed to such bonds for the first time.

This is a continuation of the Ministry of Finance’s approach, which aims to expand and diversify the investor base of Egyptian international bonds.

Furthermore, purchase orders came in a wide variety that reflects the desire of a large number of investors from all geographical regions of the world, including the United States, Europe, Asia, the Middle East and Africa. This has allowed a strong and diversified volume of applications that has eventually helped the Ministry of Finance to reduce interest rates on the bonds offered by 37.5 basis points for the three tranches, compared to the indicative prices announced at the beginning of the offering process.

The issuance was also made without adding a new issue bonus to the interest rates issued for the three tranches. In fact, the interest rates achieved on bonds with maturities of five and 10 years were lower than the prevailing prices at the secondary market before the offering.

It is a very good indicator which reflects the investors’ desire to participate strongly in the offering and invest in Egyptian international bonds.

He explained that the return on five-year bonds amounted to 3.875% with an opening return of 4.25% declared to investors. At the same time, a 5.875% return was placed on the 10-year bonds with an opening return of 6.25%, and the return for 40-year bonds stood at 7.50% with an opening return of 7.875%.

You Might Also Like

Health Ministry to launch campaign to detect chest, lung diseases nationwide

National Dialogue Board of Trustees to resume meetings on 3 May 

US nuclear power plant in central Minnesota taken offline after new leak incident

Egypt, EU discuss efforts to tackle illegal migration

Health Ministry receive over 2 million doses of ‘modified’ Pfizer vaccine for COVID-19

TAGGED: international bonds, ministry of finance
Share this Article
Facebook Twitter Email Print
Previous Article LuLu Hypermarket opens largest Egypt branch at Porto New Cairo LuLu Hypermarket opens largest Egypt branch at Porto New Cairo
Next Article SIDPEC selects Honeywell to support petrochemical complex expansion SIDPEC selects Honeywell to support petrochemical complex expansion
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Gold prices drop 1% globally due to measure to contain SVB crisis: Gold Bullion
Gold prices drop 1% globally due to measure to contain SVB crisis: Gold Bullion
Business
3.388 million tonnes of fodder worth $1.671bn released from ports in last 6 months: Agriculture Minister
3.388 million tonnes of fodder worth $1.671bn released from ports in last 6 months: Agriculture Minister
Business
New salary increase for public employees effective as of 13 April: Finance Minister
New salary increase for public employees effective as of 13 April: Finance Minister
Business
Transitional Committee of COP27 holds 1st meeting on ‘Loss and Damage Fund’ in Luxor
Transitional Committee of COP27 holds 1st meeting on ‘Loss and Damage Fund’ in Luxor
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?