Minister of Finance Amr El-Garhy told Reuters on Tuesday that Egypt will select the banks that will handle and manage the issuance of euro-denominated bonds within a period of two weeks.
Garhy said that Egypt expects to issue bonds between one billion euros and €1.5 billion in April, announcing that Egypt will start launching a promotional tour in several European countries that month.
Egypt’s external debt jumped to $80.8bn in September, an increase of 34.45 percent, and the country’s foreign exchange reserves stood at $42.524 billion at the end of February, which is an unprecedented record.
The Egyptian government is currently implementing reforms to revive the country’s economy, including increasing energy and drug prices, liberalizing the exchange rate, issuing new investment and civil service laws, making amendments to the Income Tax Law and implementing a value-added tax.
Reuters quoted three senior officials as saying the Egyptian government set the exchange rate at EGP 17.5 to the US dollar in the budget of fiscal year 2018-2019, which begins on the first of July.
The government aims to reach GDP growth of 5.5 percent in the coming fiscal year and to reduce the budget deficit to between 8.5 and 8.8 percent of the GDP.
This comes in line with Egypt’s plan to offer new Egyptian companies in the bourse to public share in order to expand the ownership base and stimulate volume of trading.
The Egyptian Exchange (EGX) is projected to see seven fresh initial public offerings (IPOs) this year, EGX chairperson Mohamed Farid said.
The first IPO will be launched this month and the second will take place in April, Farid added.
Another four or five IPOs are scheduled to be launched on EGX prior to the end of 2018, he noted, giving no further details on the names of the firms that will make share sales or their sectors.