Egypt’s sovereign USD bonds rally on Ras El-Hekma deal

Egypt’s sovereign dollar bonds surged more than 1 cent on Monday, continuing the sharp rally after the UAE announced that it would inject $35 billion within two months through Ras El-Hekma project, Federation of Egyptian Banks reported.

The US dollar dominated 2029 bond, in particular, saw the largest gains, rising by as much as 1.8 cents to reach around 85.3 cents, its highest level in over a year, the statement added.

Prime Minster Moustafa Madbouly stated on Friday that the influx of dollars will be used to tackle Egypt’s economic crisis, alleviate the foreign currency shortage, and address the issue of having two different exchange rates for the dollar.

(1 United States dollar = 30.95 Egyptian pounds)