Egypt plans to issue US$3 billion to US$7 billion of international bonds by the end of its 2020 financial year. The sovereign had borrowed heavily from overseas sources since a $12 billion IMF-backed economic reform programme was agreed upon in late 2016, and now faces a tough repayment schedule amidst a rising bill for its oil imports. Egypt’s Ministry of Finance had completed more than US$6 billion worth of international bonds in 2018 alone.
As part of its plans, Egypt will diversify its issuance types and currencies into sukuk, green bonds, yen and yuan bonds to attract new investors and ensure portfolio hedging. The country had tried in 2018 to issue in yen and yuan but could not meet all the requirements and aborted their plans. Finance Minister Mohamed Maait said he “would love to see Egypt going to these markets” this year.