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Egypt’s dollar bonds rose as much as 3-4% after the Prime Minister said that the nation has signed contracts to sell stakes in certain state assets totaling $1.9bn. He added that $1.65bn of the total amount would be received in foreign currency. The assets include the following: (a) deals to sell minority stakes in three oil and petrochemical sector companies to ADQ, Abu Dhabi’s sovereign wealth fund for $800mn (b) raise $700mn via capital raises in a portfolio of hotels and; (c) a 31% stake sale in Ezz Dekheila steel company worth $241mn. The Prime Minister said that Egypt has sold stakes in 8 of the 32 companies for which it has planned stake sales. Egypt expects an increase in annual hard currency inflow by $70bn per year to reach $191bn by 2026. These would help Egypt’s efforts to boost private sector investments and raise hard currency given depleting forex reserves. Under the IMF’s $3bn loan programme, Egypt is required to put in place economic reforms. The government had a target of raising $2bn via stake sales from state assets by end-June, but it faced setbacks.
Egypt’s 5.875% 2031s were higher by 1 points to 57.1, yielding 15.8%.
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