Egypt turns a corner
Economic reform sets country up for greater foreign investment as 30-year bond is oversubscribed and IMF looks set to release second tranche of loan, but tight capital controls still hamper business activity
Foreign investors have given Egypt’s package of economic reforms the thumbs-up. The country is celebrating a successful eurobond issuance after its government headed to international debt markets for the first time since 2015, in a bid to attract investors and support its finances. The 30-year bond was oversubscribed, suggesting improved investor appetite as well as faith in the country’s long-term potential, officials said. Egypt issued US$4bn of international bonds, which UK-based research group Capital Economics says was almost double the amount the Egyptian authorities had originally wanted. Hany Farahat, senior economist at Cairo-based investment firm CI Capital, says the appetite of foreign investors is huge: “It shows investor confidence in Egypt’s recovery.” The country is using the opportunity to increase its borrowing. Finance minister Amr El-Garhy says Egypt may issue bonds in other currencies, including the Japanese yen and China’s yuan. El-Garhy embarked on a roadshow t...
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