Egypt’s Central Bank (CBE) agreed on 11 October to enter a “new repurchase transaction” loan worth $3.8bn with a consortium of renowned international banks. The consortium includes HSBC, Credit Suisse, Deutsche Bank, JP Morgan, Natixis, ICBC Standard Bank, Citigroup, Nomura International and Abu Dhabi Bank. The agreement’s objective, according to a CBE statement, is to extend “the duration of its debt structure.”
This agreement replaces a $3.1bn loan, due to expire next month, with Cairo struggling to pay off it’s external debt that doubled to over $90bn over the last two years. Finance Minister Mohamed Maait is currently on a non-deal bond roadshow which includes visits to China, Korea, Japan and Singapore with plans to sell $5bn in international bonds this year and next as it hopes to capitalize on the country’s improving economic outlook (MEES, 6 July). (CONTINUED - 140 WORDS)