Banking & Finance Egypt aims to issue first Chinese yuan-denominated bonds By Reuters December 5, 2022 Unsplash.com Local media quoted finance minister Mohamed Maait as saying the issuance was expected to be at $500 million Egypt aims to issue its first “panda” bonds by the end of this fiscal year, deputy finance minister Ahmed Kouchock said on Sunday. “We are just waiting for the right moment,” Kouchouk told an event at the American University in Cairo. Panda bonds are bonds denominated in Chinese yuan but issued by foreign borrowers. Earlier, local media quoted finance minister Mohamed Maait as saying the issuance was expected to be at $500 million. The swollen current account deficit and $33.9 billion of international debt payments due for the three years to mid-2025 leave Egypt vulnerable, ratings agency Fitch said last month. With very limited amounts of dollars and other foreign exchange available in Egypt, importers continue to face problems financing goods from abroad, creating bottlenecks for factories and retailers, bankers said. Farouk Soussa, an economist at Goldman Sachs, noted a backlog of corporate demand for foreign exchange and tight liquidity in the system would continue to push the pound weaker if it were allowed to trade freely.
