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Foreign Money Can't Tame Egyptian Yields Amid Borrowing Spree

  • Fundraising target 17% higher this quarter than last year
  • Offshore investors boosted holdings since devaluation

An influx of foreign cash into Egyptian debt securities isn’t denting yields that remain the highest in emerging markets amid a government borrowing binge.

Offshore investors boosted holdings of government Treasury bills to 79 billion pounds ($4.4 billion) as of April 4, compared with less than 1 billion pounds before a currency devaluation in November, according to Finance Ministry data. Average yields on Egyptian debt have climbed 84 basis points this year to 17.5 percent, compared with a 13-point rise to 4.73 percent for the average of 31 countries in the Bloomberg Emerging Market Local Sovereign Index.