The Central Bank of Egypt (CBE) agreed to enter into a new repurchase transaction with a consortium of international banks, for a total amount of $3.8bn, a final maturity of 4 years and six months, and an average life of 3 years, the CBE announced on Thursday.
The consortium includes; Citigroup Global Markets Limited, Credit Suisse AG, London Branch, Deutsche Bank AG, London Branch, First Abu Dhabi Bank PJSC, HSBC Bank plc, HSBC Bank Middle East Limited, ICBC Standard Bank plc, J.P. Morgan Securities plc, Natixis, and Nomura International Plc.
According to the statement, the Repurchase Transaction will settle on 19 November, following the CBE repayment of the total of $3.1bn, on 15 November, honouring the terms of the previous Repurchase Transaction transacted in November 2017, with a consortium of international banks.
The transaction aims to achieve CBE’s objective of enhancing its liability management by extending the duration of its debt structure.
Moreover, CBE announced that the transaction reflects the continued affirmation and confidence by the international market in the success of the homegrown economic reform programme during the past years, as well as the ongoing commitment demonstrated by Egyptian authorities in bolstering domestic economic and financial conditions, which have contributed to Egypt’s improving economic profile, despite increasing risk factors in the global environment and tightening global conditions.
The statement indicates that this financing transaction is provided by the banks against the entire amount of Egypt’s dollar-denominated sovereign bonds with maturities November 2024 and November 2028, in addition to new to be issued Egypt dollar-denominated sovereign bonds maturing in 2026 and 2030.