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Dollar bonds of Egypt have moved higher this week by over 5% with analysts looking at positive signs about the nation’s plans to sell state assets. With many of its dollar bonds trading at 50-60 cents on the dollar, analysts note that valuations look attractive amid the positive news. Egypt has been focusing on privatization and has been trying to either sell or partially list at least 32 state-owned companies. This is an effort to bringing in fresh hard currency and boost private-sector participation. Gordon Bowers, an analyst at Columbia Threadneedle Investments said, “It really seems like the privatization agenda has been elevated to a national priority. The willingness to pay remains very high”. The IMF has delayed its review of a $3bn rescue program for Egypt as they seek more evidence of moving ahead with reforms. For similar reasons, several billions of promised funding from Arab nations have also yet to materialize. Egypt officials have said that they will not default on any obligations and expect more state assets to be sold in the coming weeks.
Egypt’s 5.875% 2031s have rallied over 6% since the beginning of the month to trade at 56.84, yielding 15.75%.
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