Egypt yet to set details of Asian market bond issue: finance ministry

Proceeds from the issue of so-called Samurai bonds would be used to repay debts of state oil company Egyptian General Petroleum Corp. (AFP)
Updated 14 January 2019

Egypt yet to set details of Asian market bond issue: finance ministry

  • Egypt plans to issue $2 billion worth of Japanese yen-denominated bonds
  • Egypt would complete a roadshow to promote its international bonds in February

CAIRO: Egypt has not set a date for issuing bonds on the Asian market nor decided their amount and currency, the finance ministry said on Monday, a day after two government sources said $2 billion worth of yen-denominated papers would be offered in days.

Egypt has struggled to recover from years of turmoil after a 2011 uprising and has borrowed heavily from abroad since signing an International Monetary Fund (IMF) loan deal in 2016.

The value of the Asian market issue would be limited because its aim is to build a yield curve, the ministry said.

In its statement, the ministry added that it would complete a roadshow to promote Egypt’s international bonds in February with visits to Hong Kong, Taiwan and Gulf nations.

As part of the roadshow, Finance Minister Mohamed Maait visited Seoul in October.

Deputy Finance Minister Ahmed Kouchouk has also been to Japan, Singapore and China, the ministry said.

On Sunday, Maait said his ministry had received cabinet approval for $3 billion to $7 billion worth of foreign bond offers. He did not say what currency bonds would be sold in, though he said Egypt was looking “to diversify currencies, products and markets to find good financing alternatives.”

Egyptian officials have previously said Japanese yen and Chinese yuan were two of the currencies they were considering as the nation looks to vary from the euro and US dollar.

Maait said in December that Egypt was aiming for at least two foreign currency bond issues in the first quarter of 2019.

Egypt’s foreign debt stood at $92.64 billion at the end of the financial year in June.

Its borrowing requirement for the repayment of external debt is $10.51 billion in the current financial year.

On Sunday, one government source said proceeds from a planned issue of so-called Samurai bonds in Japanese yen would be used to repay debts of state oil company Egyptian General Petroleum Corp.


Bitcoin heads for worst weekly loss in months

Updated 22 January 2021

Bitcoin heads for worst weekly loss in months

  • The world’s most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 early in the Asia session

SINGAPORE: Bitcoin wavered on Friday and was heading toward its sharpest weekly drop since September, as worries over regulation and its frothy rally drove a pullback from recent record highs.
The world’s most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 early in the Asia session, before steadying near $32,000. It has lost 11 percent so far this week, the biggest drop since a 12 percent fall in September.
Traders said a report posted to Twitter by BitMEX Research suggesting that part of a bitcoin may have been spent twice was enough to trigger selling, even if concerns were later resolved.
“You wouldn’t want to rationalize too much into a market that’s as inefficient and immature as bitcoin, but certainly there’s a reversal in momentum,” said Kyle Rodda, an analyst at IG Markets in Melbourne, in the wake of the BitMEX report.
“The herd has probably looked at this and thought it sounded scary and shocking and it’s now the time to sell.”
Bitcoin was trading more than 20 percent below the record high of $42,000 hit two weeks ago, losing ground amid growing concerns that it is one of a number of price bubbles and as cryptocurrencies catch regulators’ attention.
During a US Senate hearing on Tuesday, Janet Yellen, President Joe Biden’s pick to head the US Treasury, expressed concerns that cryptocurrencies could be used to finance illegal activities.
That followed a call last week from European Central Bank President Christine Lagarde for global regulation of bitcoin.
Still, some said the pullback comes with the territory for an asset that is some 700 percent above the 2020 low of $3,850 hit in March.
“It’s a highly volatile piece,” said Michael McCarthy, strategist at brokerage CMC Markets in Sydney. “It made extraordinary gains and it’s doing what bitcoin does and swinging around.”
Second-biggest cryptocurrency ethereum initially slipped to a one-week low on Friday before rising 6 percent late in the Asia session to $1,177.