In a move to strengthen its financial position, Egypt is set to raise up to $40 billion through its global medium-term note programme. As part of this initiative, the country plans to issue $2 billion in international bonds in early February, marking its first bond sale since 2021.
The issuance will be split into two tranches, one with a five-year maturity offering a yield of 9.25%, and the other with an eight-year maturity offering 10%. These new bonds will be listed on the London Stock Exchange, with a minimum denomination set at €100,000. The net proceeds from this issuance will be allocated to help reduce the country’s fiscal deficit or other purposes as specified in Egypt’s State budget.
Egypt’s Ministry of Finance has outlined plans to raise nearly $3 billion by the end of the current fiscal year, which concludes in June 2025. The country faces significant repayment obligations in the coming months, including €750 million in April, $1.5 billion in June, and an additional €750 million in green bonds by October. This international bond issuance is part of Egypt’s broader efforts to bolster its economy, following a tough period marked by inflationary pressures and foreign debt obligations. Furthermore, Egypt is seeking to secure €4 billion in financing from the European Union to support its reform agenda, which includes structural adjustments aimed at stabilising the economy.
Despite challenges, including inflation reaching a two-year low in December, Egypt continues to attract foreign investment. Arab investments in the country’s economy have reached nearly $40 billion, and Egypt has also secured a $231 million loan from Japan to support its private sector. Additionally, the country is expecting a $1.2 billion tranche from the International Monetary Fund (IMF) as part of its ongoing financial support programme, which was initiated with a $3 billion extended fund facility agreement signed in December 2022. These measures reflect Egypt’s determined efforts to improve its fiscal outlook and secure its financial future amidst a volatile economic environment.