Egypt plans UAE dirham bonds to lower funding costs

Reuters/Mohamed Azakir

Egypt plans to issue bonds in UAE dirham, Indian rupees, and Hong Kong dollars, the country’s finance minister said.

The bonds in various currencies are part of the government’s efforts to diversify its financial strategy, Egypt Today newspaper reported, citing Mohamed Maait.

“The move will contribute to diversifying Egypt’s debt portfolio and attract international investors at low financing costs,” he added.

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The minister disclosed that Cairo is discussing with Christopher Hui, Hong Kong’s secretary for financial services and the treasury, on the possibility of issuing bonds in Hong Kong dollars.

Maait added that the government is keen to boost economic and financial cooperation with the UAE.

Over 1,700 UAE companies have invested around $29 billion in Egypt, he said. 

The finance minister earlier said Egypt was ready to explore the Asian financial market to diversify funding sources and reduce financing costs.

The North African nation has diversified its funding sources globally, including issuing the first green sovereign bonds in the Middle East and North Africa. 

The country also entered the Chinese market with a sustainable Panda bond and returned to Japanese markets with the second international issuance of Samurai bonds.