Egypt’s Eurobond may be delayed until mid-January; says FinMin

Egypt’s finance ministry may delay the issuance of $2-2.5 billion in international bonds until mid-January due to market volatility, state news agency MENA reported.

“There is volatility in the global market at the moment and we will wait for a few days to determine our position on whether to issue the bonds by the end of November or the beginning of next month or wait until mid-January,” Amr El Garhy told reporters, MENA said.

On November 9, El Garhy was quoted as saying in a research note by EFG Hermes that Egypt’s finance ministry will set the week of Nov. 23 as a date for beginning a Eurobond roadshow with a target size of $2-2.5 billion.

El Garhy said the bond will help bridge a projected funding gap of $32-34 billion over the coming three years.

Egypt has been struggling to attract hard currency and revive its economy since a 2011 uprising that drove away tourists and foreign investors. Earlier this month it floated the pound.

A day later, the finance ministry said it is considering postponing but still plans to issue an international Eurobond by the end of the year but will decide on the appropriate timing once it has gauged the impact of Donald Trump’s victory in the U.S. election on global markets.

Source: Reuters