Egypt eyes bonds in UAE dirhams, rupees, dollars to diversify debt portfolio

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The Egyptian government is exploring the issuance of bonds denominated in Emirati dirhams, Indian rupees, and Hong Kong dollars, in a bid to broaden its financing options and attract global investors.

This diversifying strategy aims to tap into new markets and currencies, potentially securing lower borrowing costs.

Egyptian Finance Minister Mohamed Maait announced the potential move on the sidelines of the Asian Financial Forum in Hong Kong. He told UAE’s government-owned news agency WAM that the ongoing discussions with Hong Kong’s financial chief, Christopher Hui, regarding the possibility of issuing bonds in Hong Kong dollars.

“These issuances will contribute to diversifying our debt portfolio and attracting investors worldwide at competitive rates,” Maait stated, citing recent successful offerings of green bonds worth $750m and sovereign sukuk (Islamic bonds) worth $1.5bn.

The Minister also emphasized Egypt’s desire to strengthen cooperation with the United Arab Emirates, particularly in taxation, economic, financial, and investment spheres across all sectors. He pledged to address any tax or customs obstacles faced by Emirati businesses operating in Egypt, to encourage their expansion, increased investment, and enhanced productivity.

Highlighting the significance of Emirati investments in Egypt, Maait revealed that over 1,700 UAE companies have invested around $29bn (AED 106.5bn) in various sectors, including wholesale and retail, transport, logistics, finance, insurance, technology, real estate, construction, tourism, agriculture, and food security.