The Finance Ministry will begin issuing retail bonds through Egypt Post at what it describes as attractive interest rates, according to the ministry’s mid-year performance report seen by EnterpriseAM. The move is designed to help middle-income Egyptians hedge against inflation, and forms part of the government’s broader strategy to reduce the cost of debt, attract new retail investors, and raise awareness of government debt instruments as secure investment options.

Remember: A government source told EnterprisAM last month that a plan is in the works to launch a dedicated retail bond market in 2025, with support from the World Bank, in a move that would allow individuals to directly invest in treasury bills and bonds for the first time. Interest in government debt has been on the rise, driven by individual investors purchasing through bank agents and custodians.

The Finance Ministry is rolling out a promotional campaign to encourage retail investment in sovereign debt, and is working on additional instruments tailored to specific groups. These include debt-based investment funds targeting Egyptians abroad — particularly in liquidity and fixed-income instruments — as well as new issuances in the primary market like sukuk, infrastructure bonds, and green bonds.

More international issuances are also coming our way, with the report confirming that the ministry has secured the cabinet approval for plans to issue between USD 3-4 bn worth of international bonds in the second half of FY 2024-25. Proceeds from the offering — which may include sukuk and long-term sustainability bonds — will go toward covering USD 3 bn in maturing external debt due during the same period. The issuance will come as global interest rates begin to ease.

Tags: