Egypt issues Japanese Yen-dominated bonds worth $500 mln

Minister of Finance Mohamed Maait said the issuance is called the “Samurai bond” and is issued for the Japanese market.

The Samurai bond is a yen-denominated bond issued in Tokyo by non-Japanese firms and is run under Japanese regulations.

These kinds of bonds allow the issuer to access Japanese capital, which can be tapped for domestic investments or for financing operations outside Japan.

It is worth noting that this bond is an instrument to which the government can resort to support their economies against foreign currency exchange risks, which is an ongoing threat to emerging markets amid the inflationary pressure imposed by the pandemic and aggravated by the Russian-Ukrainian conflict.

Maait said that this issuance took place despite the ongoing challenges with an insurance guarantee secured from the Bank of Japan and covered by Sumitomo Mitsui, a Japanese state-run insurance company, and Nippon Export and Investment Insurance.