Cairo – Mubasher: The international bonds that are to be offered on the global debt market will add $6 billion to the reserves in the coming months, the Central Bank of Egypt's governor said.
The value of the international bonds will be determined according to the finance ministry's vision, added Tarek Amer, CBE governor, in a press conference held on Thursday.
The minister of finance said in October that Egypt intends to start the promotional campaigns for the issuance of $2 billion international bonds in the third and fourth weeks of November.
Amr Al Garhy, the finance minister, added to CBC channel that the value of the bonds will be nearly $2 billion, give or take, depending on market circumstances.
On 17 August, Egypt's Ministry of Finance chose four banks to manage the offering process, namely Natixis Bank, J.P. Morgan Bank and BNP Paribas.
Egypt awaits the international monetary fund’s (IMF) approval on a loan agreement, which will boost the confidence in the government’s program and will provide the required finances to apply the economic reform policies, the minister indicated.
Egypt reached a $12 billion loan agreement with the IMF over three years, while the government intends to issue US dollar-dominated bonds at a value between $3 and $5 billion, with an interest rate reaching 7.5%.
Egypt's financing gap reaches $30 billion over the period of three years, ending on 30 June 2018, according to the government's programme adopted by the Egyptian parliament.
Moreover, Egypt postponed offering $1.5 billion international bonds in December 2015, awaiting for the suitable circumstances, according to Samy Khallaf, the assistant of the finance minister.
In mid-2015, the country offered $1.5 billion international bonds on Luxemburg Bourse, as a part of a long-term plan to offer $10 billion international bonds, according to the former finance minister, Hany Qadry.
Egypt's external debt increased 16% to $55.6 billion by the end of June, according to data release by the CBE.
