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
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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.


Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

Updated 25 April 2019
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Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

  • SRC CEO Fabrice Susini: One of our key objectives is to ensure that the banks are extending loans to more and more people
  • Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production

RIYADH: The head of the state-owned Saudi Real Estate Refinance Company (SRC) has made an unprecedented offer to the Kingdom’s home-seekers to underwrite future mortgages.
Speaking at the Financial Sector Conference in Riyadh, Fabrice Susini, SRC CEO, told the audience: “Ask them (the banks) for a mortgage, and we will refinance it.”
Although Susini later clarified his remarks to show that he still expected normal standards of mortgage applications to be met, the on-stage show of bravado illustrates SRC’s commitment to facilitate home-ownership in the Kingdom.
“Obviously if you have no revenue, no income, poor credit history, that will not apply. Now if you have a job, it is different. We have people in senior positions at big foreign banks that could not get a mortgage,” he explained.
He said that Saudi banks have traditionally assessed mortgages on the basis of “flow stability” of earnings. Government employees, or those of big corporations like Saudi Aramco and SABIC, found it easy to get mortgages “because you were there for life.”
“One of our key objectives is to ensure that the banks are extending loans to more and more people. The government is pushing for entrepreneurship, private development, private jobs. If you work in the private sector and cannot get a mortgage the next thing you will do is go to the government for a job,” Susini said.
Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production. Saudi Arabia has one of the lowest rates of mortgage penetration of any G20 country — in single digit percentages, compared with others at up to 50 percent.