Egypt's Second Samurai Bond Issuance Captivates Global Investors
First Bank
Mohamed Maait, Minister of Finance, confirmed that Egypt has once again succeeded in returning to the Japanese markets.
Egypt executed its second international issuance of Samurai bonds worth 75 billion Japanese yen, approximately half a billion dollars, with a distinguished periodic yield rate of 1.5% annually over a period of 5 years.
This move helps extend the average maturity of the public debt portfolio, reduce external debt costs, diversify sources and instruments of financing, currencies, issuance markets, and expand the base of international investors.
This reflects Egypt's ability to continue international issuances despite the harsh global economic challenges that cast their shadows on international financial markets due to the natural reflection of the severe inflationary wave resulting from geopolitical tensions.
The Minister added that this issuance comes less than 2 weeks after Egypt's successful entry into the Chinese capital markets for the first time with an issuance of 3.5 billion Chinese yuan.
Ahmed Kojak, Deputy Minister for Financial Policies and Institutional Development, stated that Egypt's second international issuance of Japanese Samurai bonds attracted many Japanese investors, indicating the resilience of the Egyptian economy and its ability to achieve targets and flexibility in facing internal and external shocks.
Mohamed Hegazy, Head of the Public Debt Unit at the Ministry of Finance, pointed out that this issuance was executed as a private placement in collaboration with SMBC Nikko Securities Inc.
As the offering and promotion manager and guarantor for the issuance, with the guarantee of Sumitomo Mitsui Banking Corporation and the African Finance Corporation as the guarantor for the Japanese bank.
Through this collaboration, the Ministry of Finance was able to obtain a distinguished pricing for the issuance with a guarantee to cover its targeted size.
