Egypt joined the JP Morgan Emerging Market Bond Index (EMBI) Monday to become the second country in the Middle East and Africa to be listed in the index.
A press statement published by the government on its official Facebook page stated that with an estimated weight of 1.85 percent, Egypt is expected to enter the index with 14 bonds valued at $26 billion.
Finance Minister Mohamed Maait said that the Ministry has sought to enable Egypt to rejoin the EMBI for three years after the country had been removed from the index in June 2011 for not meeting requirements.
The Minister said Egypt had fulfilled the bank's requirements to rejoin the index, including extending the life of government debt, adjusting the yield curve, and promoting foreign investors' participation in government financial instruments.
Maait indicated that Egypt's accession to the JP Morgan government bond index for emerging markets is a new certificate of confidence from foreign investors in the solidity of the Egyptian economy.
The Minister explained that this confirms that 90 percent of the surveyed foreign investors supported Egypt's entry into the index.
The step reflects the continuous efforts of the Ministry of Finance to reduce the cost of public debt as part of the package of measures taken by the state for economic reforms, according to Maait.
Meanwhile, advisor to the Deputy Minister of Finance, Nevine Mansour, said Egypt would join the JP Morgan Environmental and Governance Index based on the launch of green bonds in October 2020.
Egypt's percentage in this index is 1.18 percent, reflecting the country's presence on the map of sustainable economies and the country's orientation towards green debt tools.
Deputy Minister of Finance for Financial Policies and Institutional Development Ahmed Kojak stated that Egypt's inclusion in the indicator translates the efforts of the Ministry of Finance and would contribute to achieving one of the Egyptian government's debt management strategy objectives, which is to reduce the cost of financing.
It also helps activate the stock market to increase its levels of liquidity and enhance the demand for government debt instruments, which would reduce its cost through the decline in the return required by investors.
Kajok expects Egypt to issue international bonds worth $5 billion in the 2022-2023 fiscal year, which begins next July.
