Ministry of Finance manages re-issue of international bonds in two new tranches


Here are the details

The Arab Republic of Egypt, represented by the Ministry of Finance, was able to relaunch the issue of the international bonds issued as a special offer to the Central Bank of Egypt on November 10, 2016 with the issuance of two new tranches with maturities of 8 years and 12 years with maturity in 2026 and 2030.

HSBC acted as Settlement Manager and the Offering was completed on November 19, 2018. The Central Bank of Egypt exchanged the issue with a group of large Reverse Repo Banks investment banks. The services of the Office of the International Legal Adviser "Dechert "Local" Al-Sharqawi and Sarhan "to complete all legal procedures for the issue.

It is noteworthy that the issuance of the two new tranches was performed with a good rate of return despite the volatility of the international financial markets in recent times, which negatively affected many indicators of the American, European and Asian markets, confirming the confidence of the foreign investor in the Egyptian economy . Moody's outlook for August 2018 ranks stable to positive and the report of the International Monetary Fund (IMF), which welcomed the measures that have been implemented so far in the economic reform program to achieve the desired sustainable development goals , TCER This month of Standard & Poor's and confirmed that it issued last May to raise Egypt's credit rating from B to B- and Egypt's ability to continue to improve its economy and increase contagious growth and debt reduction " .

This proposal is part of the implementation mechanisms of the Ministry of Finance's strategy to diversify sources of financing and convert short-term debt into long-term debt through the issuance of long-term financial instruments to reduce the burden of public debt service and reduce the risk of scrolling. In the local market, covering the expected financing needs of the government for the current fiscal year and paying its obligations at the lowest possible cost in the medium and long term.

The Ministry of Finance has concluded an agreement with the Central Bank of Egypt to transfer the exchange rate of the issue product in Egyptian pounds and add the amount to the consolidated cash account with the Central Bank of Egypt.

On November 10, 2016, the Ministry of Finance was able to issue $ 4 billion of bonds on the Irish Stock Exchange through a special offer for the Central Bank of Egypt, worth $ 1.360 million with a yield per annum of 4.62%, maturing on December 10, 2017. With an annual yield of 6.75% maturing on November 10, 2024, and securities in the amount of US $ 1,320 million with an annual yield of 7% to be paid on November 10, 2028.

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Source: day 7


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