Egypt's financial regulator issues rules for covered bonds

Reuters , Tuesday 5 Apr 2016

Egypt's Financial Supervisory Authority detailed regulations on Tuesday for the issuance of covered bonds, saying it was part of efforts to develop the capital market system and diversify non-banking financial instruments in Egypt.

Covered bonds are supported by cash flows from mortgages or public sector loans with an underlying asset pool that provides additional credit cover beyond the standard corporate bond.

Egypt has been struggling to revive its economy after an uprising in 2011 shook investor sentiment, sending the country into political and economic turmoil.

More corporate issuance would give companies an important channel to raise funds for investment. Last year, around 90 percent of bond issues in Egypt were by the government.

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