Egypt to weigh local-currency bond on international market
Egypt is considering issuing local currency-denominated bonds on the international market in an effort to boost overseas inflows and reduce the cost of borrowing, four people familiar with the matter said.
While investors would purchase the bonds in dollars, the principal and interest would be payable in Egyptian pounds, which means the buyer bears the risk of any fluctuation in the exchange rate, said the people, declining to be named as the plans are still under discussion.
A pound-denominated international bond is one of a number of options the government is considering as it seeks to diversify its funding sources and reduce the mounting cost of debt servicing. The Finance Ministry didn’t immediately respond to requests for comment.