Egypt issues samurai bonds in Japan, first int’l offering since pound devaluation

Egypt has issued 60 billion yen ($493.26 million) in Samurai bonds in the Japanese market, the country’s finance ministry announced in a statement on Thursday.

This is Egypt’s first international offering since it depreciated its pound currency by 14 percent against the U.S. dollar on Monday to fight the flight of foreign investors from Egyptian pound treasury bills after Russia invaded Ukraine.

Egypt’s Samurai bonds, which carry an annual coupon of 0.85 percent, received a credit guarantee from Japan’s megabank Sumitomo Mitsui Financial Group Inc (SMFG) and coverage from state-owned government agency Nippon Export and Investment Insurance, the ministry statement read.

“Our success in selling the first Samurai bond in the Japanese market reflects our ability to return to the international bond markets, including one we are entering for the first time in Egypt’s history, despite the unprecedented global challenges economies are witnessing,” the ministry statement quoted Finance Minister Mohamed Maait as saying.

The bond sale is part of Egyptian government’s plan to diversify the country’s sources of funding, the statement added.

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