A second samurai bond issuance is in the pipeline: Ministers have given the green light to the Finance Ministry to take a fresh USD 500 mn issuance of JPY-denominated bonds to market, the cabinet said in a statement following its weekly meeting yesterday. The so-called “Samurai bonds” would carry a tenor of five years, the statement said, without disclosing when the sale could take place.

This isn’t our first rodeo in Japan: Egypt closed its maiden samurai bond issuance in March 2022, when it sold USD 500 mn (c.JPY 60 bn) of the JPY-denominated bonds.

Remember: External pressures have forced the government to diversify its foreign debts. With the currency crisis and rising rates all but shutting Egypt out from western capital markets over the past year, the government has turned to other types of debt such as Samurai bonds and sovereign sukuk. It is also planning to sell CNY-denominated bonds in China for the first time, with a USD 500 mn issuance in the pipeline.

ALSO FROM THE CABINET MEETING-

#1- Samsung gets a golden license: Samsung Electronics received the golden license to establish and operate a 6k square meter mobile phone factory in Beni Suef, the cabinet said in a statement. The company commits to completing the first phase and commencing production in the 2H 2024, with the project expected to be completed by 31 December 2025.

Expect more of this in the coming weeks: President Abdel Fattah El Sisi this week directed the cabinet to expand the granting of golden licenses to all the priority manufacturing and industrial projects.

#2- A new council for green hydrogen: The cabinet also approved the launch of a council for green hydrogen tasked with overseeing the implementation of the government’s green hydrogen strategy, it said in a separate statement. The council will be headed by the PM, and feature key cabinet ministers and the heads of the Suez Canal Economic Zone, the General Authority for Investment (GAFI) and the Sovereign Fund of Egypt.

#3- A new relationship : The cabinet agreed to set up a unit to handle relations with the multilateral Brics bloc of major emerging economies after it joins the organization next year, according to a separ ate stateme nt. The unit will be made up of relevant ministers and other officials, he said, without giving more details.

REMEMBER- Egypt was among six countries invited to join the bloc next year during the organization’s annual summit in South Africa last week. The OG members are Brazil, Russia, India, China, and South Africa.

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