Egypt Will Issue Securitisation Bonds to Raise Over USD 10 Billion

The Egyptian government is set to issue securitisation bonds to raise funds, targeting up to USD 10.1 billion in stages throughout the fiscal year 2024-2025, according to Al-Arabiya. The bonds will be exchanged for a portion of Egypt's future dollar revenues, with the initial phase aiming to raise USD 1.5 billion specifically from foreign investors.

The government's objective is to convert 38% of its foreign debt into investments. The securitisation will involve utilising the government's existing sources of dollar income, including revenues from the Suez Canal, tourism, remittances from Egyptians overseas, exports and direct investments.

The Council of Ministers is currently evaluating the specific dollar source to be utilised for the securitization, as stated by the official.

In 2022, the Egyptian Financial Supervision Authority granted authorisation for securitisation companies to issue tradable bonds. These bonds serve as a means to finance public and private entities, with expected future cash flows acting as collateral.