Our second samurai bond issuance has hit the Japanese market: Egypt raised JPY 75 bn (c. USD 500 mn) in a JPY-denominated bond sale in Japan on Thursday in what was the country’s second samurai bond sale, the Finance Ministry said in a statement.

The specs: The five-year bonds were priced at a 1.5% annual rate. The ministry was able to cover the targeted subscription, the statement reads, without disclosing the subscription rate.

It’s all about diversification: The ongoing currency crisis and rising global rates have all but shut Egypt out from western capital markets over the past year, forcing the government to turn to more unconventional types of debt such as sukuk and Panda bonds. The samurai bond issuance comes less than two weeks after the ministry closed its maiden CNY 3.5 bn panda bond issuance in China.

Remember: Egypt closed its maiden samurai bond issuance in March 2022, when it sold JPY 60 bn (c. USD 500 mn) of the securities.

ADVISORS- SMBC Nikko Securities managed and promoted the issuance. It also guaranteed the issuance alongside the Bank of Japan, Sumitomo Mitsui Banking Corporation, and the Africa Finance Corporation.

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