Egypt Said to Weigh Local-Currency Bond on International Market
- People say investors would bear foreign-exchange risk involved
- Egypt wants to boost overseas inflows, reduce borrowing costs
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Egypt is considering issuing local currency-denominated bonds on the international market in an effort to boost overseas inflows and reduce the cost of borrowing, four people familiar with the matter said.
While investors would purchase the bonds in dollars, the principal and interest would be payable in Egyptian pounds, which means the buyer bears the risk of any fluctuation in the exchange rate, said the people, declining to be named as the plans are still under discussion.