Egypt picks four banks for Eurobond issuance set for April

Ahram Online , Monday 12 Mar 2018

Egypt previously raised $4 billion in a three-times oversubscribed bond issuance in February

Egyptian pound to US dollars (Photo: AP)
Egyptian pound to US dollars (Photo: AP)

Egypt's Finance Ministry chose investments banks Deutsche Bank, BNP Paribas, AlexBank (a member of the Intesa Sanpaolo Group) and Standard Chartered to manage and promote a €1-1.5 billion Euro-denominated bond issuance set for April of this financial year, the ministry announced Monday in a statement.

The ministry also picked Al Tamimi & Company and US-based Dechert for the issuance as legal advisors to the government.

Egypt's $4 billion bond issuance in February was more than three-times oversubscribed.

The government is planning on issuing $3-4 billion in Eurobonds during the next fiscal year 2018/2019.

The upcoming issuance is part of the ministry's moves to fulfill funding needs in a bid to plug the budget deficit and raise its foreign currency reserves.

Egypt's foreign reserves rose to $42.524 billion by the end of February from $38.209 billion the month before, the central bank earlier this month.

The increase in reserves in February came on the back of the Eurobond issuance.

The Central Bank of Egypt said last month that Egypt’s foreign debt rose to $80.8 billion in the quarter that ended in September 2017, representing 36.2 percent of GDP, which the bank says is still within safe limits.

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