RIYADH: Egypt is intending to raise $500 million worth of yen bonds, also known as Samurai bonds, this week as it attempts to diversify funding, Bloomberg reported.
This comes as a result of the economic pressure the North African country is facing due to the war between Russia and Ukraine.
Japanese multinational banking and financial services institution Sumitomo Mitsui Banking Corp is going to be managing the transaction which counts as Egypt’s first yen bond sale.
“We found good investor appetite. The bonds will have a competitive yield considering the tightening market conditions that have limited access for several emerging economies,” Bloomberg reported, citing Mohamed Hegazy, the head of the finance ministry’s debt management unit.
The government is set to issue the five-year debt in a private placement on Thursday with a target yield of between 0.8 to 0.85 percent, Hegazy disclosed.
This move is one among many to come as Egypt scurries to secure its economy’s condition considering it has to import most of its fuel and that it buys around 85 percent of its wheat from Russia.
The country is in talks with the International Monetary Fund regarding a support package that might include a loan.
