Egypt targets $40bn to meet budget funding needs

Egypt is aiming to raise up to $40 billion through its global medium-term note programme.

The net proceeds will be used to finance a portion of the fiscal deficit or any other purpose outlined in the state budget law, according to a base offering circular published on the London Stock Exchange (LSE).

The minimum denomination for each note has been fixed at €100,000 ($103,983).

As part of the plan, Egypt will raise $2 billion by issuing international bonds in early February. It will be issued in two tranches of five and eight-year maturities, with prospective yields of 9.25 percent and 10 percent, respectively.

The issuance is Egypt’s first international bond sale since 2021, when it issued $6.75 billion in bonds.

The new bonds will be listed on the LSE.

The government aims to raise nearly $3 billion by the end of the current fiscal year, which ends in June 2025, finance minister Ahmed Kouchouk has said.

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The country is due to repay €750 million in April, followed by $1.5 billion in June and $750 million green bonds in October, Reuters reported, citing the finance ministry.

In January, local media reported that Egypt was aiming to strike a deal with the European Union (EU) to secure €4 billion ($4.2 billion) in financing to back its current reform agenda.

Egypt was expecting to receive $1.2 billion from the International Monetary Fund (IMF) in January. It initially signed a $3 billion, 46-month extended fund facility agreement with the fund in December 2022.