{"id":563998,"date":"2021-08-02T13:38:10","date_gmt":"2021-08-02T13:38:10","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/"},"modified":"2021-08-02T13:38:10","modified_gmt":"2021-08-02T13:38:10","slug":"egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/","title":{"rendered":"Egypt expects USD 3-4 bn bond inflows in 2H2021"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a><strong> Egypt expects to see USD 3-4 bn of foreign inflows into the bond market in<\/strong><strong> 2H2021<\/strong>, Beltone Financial\u2019s chief economist Alia Mamdouh told Bloomberg Daybreak this morning <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2021-08-02\/egypt-s-macro-outlook-in-focus-video\">(watch, runtime 4:39<\/a>). Portfolio flows should pick up over the next six months if Egyptian debt is made \u201c<a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/8a1b21c3-fa9d-4c13-9002-b4b8712e3e07\">Euroclearable<\/a>\u201d and the country\u2019s local-currency bonds make it back onto JPMorgan\u2019s emerging-market sovereign bond index later this year.<\/p>\n<p><strong>We should hear from JPMorgan by October whether Egypt will be included in the index<\/strong>, which is expected to generate <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ea858526-5700-49cf-9a6c-4bb9a7b54d2a\">USD 1.4-2.2 bn in inflows<\/a> into EGP-denominated debt. The US investment bank <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2942a7fd-4cca-4286-98b3-5c2d1c99da8a\">said in April<\/a> it would take a decision within six months.<\/p>\n<p><strong>And a decision from Euroclear is expected at a similar time:<\/strong> Egypt\u2019s bonds could start to be cleared through the Belgium-based clearinghouse <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/95e658a0-969e-43ad-84b1-5ad3188839e2\">between September and November<\/a>, making it easier for foreign funds to get into and out of Egyptian debt.<\/p>\n<p><strong>Egypt made it onto FTSE Russell\u2019s new frontier-market sovereign bond index<\/strong> <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b180946d-ee6d-4bca-a997-bdcf0c56256a\">launched in June<\/a>, which the Finance Ministry believes should attract another USD 4 bn in foreign inflows.<\/p>\n<p><strong>Foreign holdings have rebounded to new record highs this year<\/strong> following the emerging-market sell-off that accompanied the first wave of the coronavirus in March. Foreign investment in bills and bonds rose to between <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/32c7b2cc-95aa-4cb6-962f-496eade1e38d\">USD 28-29 bn<\/a> at the end of May, after having fallen to a nadir of USD 10.4 bn in May 2020.<\/p>\n<p><strong>We\u2019re already seeing a recovery in foreign inflows into debt: <\/strong>Foreign inflows dropped in March and April 2020 due to the pandemic-induced sell-off, but hot money started <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a02f6809-1380-4df3-863e-2926ff19819f\">coming back<\/a> to the country in May of the same year to reach USD 23 bn by the end of last November, up from USD 21.1 bn six weeks earlier.<\/p>\n<p><strong>Where are yields headed?<\/strong> Bond yields are also expected to stay elevated at current levels of 15-15.2% until the end of 2021, with an expected \u201cslight\u201d uptick in 2022 with the rise of corridor rates, Mamdouh said.<\/p>\n<p><strong>Rising global commodity prices to start making their mark on Egypt:<\/strong> An uptick is expected in inflation rates that will likely average 6.9% in 2H2021 compared to 4.5% in 1H2021 due to rising global commodity prices and a recovery in spending patterns, she said.<\/p>\n<p><strong>Rate hike in 2022?<\/strong> As a result, Beltone is expecting the central bank to raise interest rates by 100 bps during 2H2022.<\/p>\n<p><strong>The CBE will likely <\/strong><strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/597c7a82-ab0a-4b2c-a706-8bd715c974fe\">leave interest rates on hold<\/a><\/strong><strong> for the sixth consecutive meeting<\/strong> with a close eye on rising commodity prices, our recent Enterprise poll says.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt expects to see USD 3-4 bn of foreign inflows into the bond market in 2H2021, Beltone Financial\u2019s chief economist Alia Mamdouh told Bloomberg Daybreak this morning (watch, runtime 4:39). Portfolio flows should pick up over the next six months if Egyptian debt is made \u201cEuroclearable\u201d and the country\u2019s local-currency bonds make it back onto [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":563999,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10034],"tags":[82,104,633],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round-economy","tag-bonds","tag-economy","tag-enterprisepm","wpautop","entry"],"acf":{"mongo_id":"140b7bfd-70e5-4cbe-9774-f087dcd5d641","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/8\/340.jpg","photo_position":"above","related_issue":[563994],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt expects USD 3-4 bn bond inflows in 2H2021 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt expects USD 3-4 bn bond inflows in 2H2021\" \/>\n<meta property=\"og:description\" content=\"Egypt expects to see USD 3-4 bn of foreign inflows into the bond market in 2H2021, Beltone Financial\u2019s chief economist Alia Mamdouh told Bloomberg Daybreak this morning (watch, runtime 4:39). Portfolio flows should pick up over the next six months if Egyptian debt is made \u201cEuroclearable\u201d and the country\u2019s local-currency bonds make it back onto [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-02T13:38:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/8\/340.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Egypt expects USD 3-4 bn bond inflows in 2H2021\",\"datePublished\":\"2021-08-02T13:38:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\"},\"wordCount\":417,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/8\/340.jpg?fit=%2C&ssl=1\",\"keywords\":[\"Bonds\",\"economy\",\"EnterprisePM\"],\"articleSection\":[\"SPEED ROUND: ECONOMY\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\",\"name\":\"Egypt expects USD 3-4 bn bond inflows in 2H2021 - 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Fourteen EGP bonds worth around USD 26 bn have been added to the JPMorgan GBI-EM Global Diversified Index, giving Egypt a weighting of 1.85%,\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/2.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":556181,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/14\/our-sovereign-debt-should-finally-be-back-on-jpmorgan-ems-govt-debt-index-in-january-2022\/","url_meta":{"origin":563998,"position":2},"title":"Our sovereign debt should finally be back on JPMorgan EMs gov\u2019t debt index in January 2022","author":"enterpriseam admin","date":"14 October 2021","format":false,"excerpt":"Egypt is expected to make it back onto JPMorgan\u2019s emerging-market sovereign bond index by the end of January 2022, the US investment bank said in a research note picked up by Reuters. The country is eligible for a weight of close to 1.85%, with 14 government bonds with a combined\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/10\/155.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561944,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/27\/egypts-inclusion-in-jpmorgans-bond-index-could-be-less-lucrative\/","url_meta":{"origin":563998,"position":3},"title":"Egypt\u2019s inclusion in JPMorgan's bond index could be less lucrative","author":"enterpriseam admin","date":"27 April 2021","format":false,"excerpt":"Inclusion in the JPMorgan bond index may not be quite as lucrative as first thought: Egypt could see inflows worth USD 1.4-2.2 bn in the local currency bond market if JPMorgan reincludes it in its emerging-market government bond index, research analysts at the investment bank have said, according to Reuters.Finance\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/281.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":542704,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/12\/high-rates-upcoming-passive-inflows-bode-well-for-egyptian-bonds\/","url_meta":{"origin":563998,"position":4},"title":"High rates, upcoming passive inflows bode well for Egyptian bonds","author":"enterpriseam admin","date":"12 January 2022","format":false,"excerpt":"Egypt\u2019s bond market is poised for more gains this year thanks to our attractive interest rate, which is currently the world\u2019s highest after adjusting for inflation, several global asset managers tell Bloomberg. Amid a global bond rout prompted by the Federal Reserve\u2019s decision to accelerate plans to hike rates, analysts\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/138.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":553907,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/13\/egypt-to-rejoin-jpmorgan-em-bond-index-in-january-2022\/","url_meta":{"origin":563998,"position":5},"title":"Egypt to rejoin JPMorgan EM bond index in January 2022","author":"enterpriseam admin","date":"13 December 2021","format":false,"excerpt":"Egypt is set to join JPMorgan\u2019s Emerging Markets Bond Index (EMBI) by the end of January with an estimated weight of 1.8%, Finance Minister Mohamed Maait announced yesterday, according to a cabinet statement. Some 14 government bonds, with a total value of USD 26 bn, are expected to enter the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/317.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=563998"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563998\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/563994"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/563999"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=563998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=563998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=563998"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=563998"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=563998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}