Banque Misr, Egypt’s second-largest state-run bank, plans to raise US$500 million via a dollar-denominated bond on international markets within three months, three banking sources said Thursday.
Two of the sources said the bank was currently negotiating with international institutions to promote the bond sale.
The Egyptian government paved the way for the country’s banks to tap financial markets for cash when it returned to the international debt market last month after a five-year hiatus due to political and economic instability.
Egyptian banks are now lining up to raise more dollars to fill a gap that has pushed up inflation, putting economic recovery at risk.
National Bank of Egypt, the biggest state-owned bank, is already arranging a US$390 million, 37-month syndicated loan.
Banque Misr has held informal talks with potential arrangers for the bond, including Gulf banks and international banks, a third source said. The source said the bond would be a 5-year deal and would follow an expected syndicated loan by Banque Misr.
Last month, banking sources said Banque Misr had invited banks to pitch to arrange a potential dollar-denominated syndicated loan expected to raise around US$300 million.
Two of the sources said on Thursday that the syndicated loan would go ahead within three months.