Finance Minister: Egypt succeeds in returning to international bond markets by issuing $500 million… despite all global challenges

Minister of Finance
6603 Fathy Al-Sayeh

The first Egyptian issue of samurai bonds…attracts Japanese investors and confirms their confidence in our economy

Obtaining a low price for 5-year samurai bonds in the Japanese market
The Ministry of Finance succeeds in diversifying debt instruments, currencies, issuance markets and investor segments to reduce the cost of financing

The Ministry of Finance has succeeded, in returning to the international bond markets, despite the repercussions of the Russian-Ukrainian crisis, and the unprecedented global economic challenges it poses, and was able to launch the first issuance of samurai bonds in the Japanese market, with a value of 60 billion yen. Japanese, equivalent to about half a billion dollars, and thus Egypt will be the leader in the Middle East in this field; As the first country to issue international bonds denominated in the Japanese yen currency in the Japanese markets. The Ministry of Finance was able to launch this issue with a credit guarantee from the Japanese Bank Sumitomo Mitsui and the coverage of one of the Japanese government insurance institutions, Nippon Export and Investment Insurance, and to obtain a low pricing for samurai bonds in the Japanese market; Where the coupon amounted to 85.0% annually for a period of 5 years, which makes it more distinguished compared to the coupon prices of international dollar bond issues with an average total annual cost of issuance of 2.33%.6603
Minister of Finance, Dr. Mohamed Maait, affirmed that our success in launching the first samurai bond issue in the Japanese market reflects our ability to return to the international bond markets, including Those that we are entering for the first time in the history of Egypt, despite the unprecedented global challenges that the economies are witnessing, pointing out that the Egyptian issuance of samurai bonds in the Japanese market succeeded in attracting many Japanese investors, as it met with great demand from them, which indicates their confidence in the solidity of the economy Al-Masry and his ability to achieve his goals in light of the current global economic repercussions. The Minister added, that this issuance is characterized by specifications of a special nature due to the difference of the Japanese market from other international markets, as the Japanese investor is more selective in his investment policies and more willing to invest in debt instruments of countries with a high credit rating. He explained that this issuance comes within the Ministry of Finance’s successful plan to diversify debt instruments, issuance currencies and markets, and investor segments, extend the life of the debt, reduce the cost of external debt, and then reduce the cost of financing.