Egypt explores possibility of Gulf currency-denominated bonds

Egypt is currently contemplating the issuance of bonds denominated in Gulf currencies, according to statements made by Egyptian Finance Minister Mohamed Maait during the Hapi newspaper conference titled "Investing in Potential Energies."

Maait acknowledged that conducting a study on issuing bonds in Gulf currencies would require coordination with advisors and lawyers, emphasizing that the process will be challenging.

In November 2023, Egypt achieved a successful sale of nearly $500 million worth of 5-year Samurai bonds in the Japanese market, boasting an average annual yield of 1.5 percent. Prior to that, Egypt also introduced Panda bonds worth $500 million in the Chinese market, offering a 3.5 percent annual return for a duration of 3 years.

Furthermore, the Egyptian Ministry of Finance is now considering the issuance of Masala bonds denominated in Indian Rupees, with a value of up to $500 million next year. Minister Maait had previously informed the media during COP28 that this move aims to diversify Egypt's financing tools, markets, sources, and bonds.