Egypt Daily News – Egypt’s dollar-denominated sovereign bonds experienced significant gains on Thursday, reaching their highest value in two years.
This increase was attributed to the Egyptian government’s announcement of planned Saudi investments totaling $5 billion, which would not be tied to Saudi Arabia’s existing deposits at the Central Bank of Egypt.
The bonds maturing in 2059 were particularly notable, rising by 1.35 cents to reach 77.60 cents per dollar by 1:10 PM GMT. Near-term bonds were also in high demand, priced at 99.52 cents.
As of December 31, 2023, data from the Central Bank of Egypt highlighted that Saudi Arabia maintained long-term deposits with the bank amounting to $5.3 billion.
In a press conference, Egyptian Prime Minister Mostafa Madbouly stated that the new $5 billion investment from Saudi Arabia would be in addition to the existing deposit and would enhance bilateral economic relations.
Further enhancing cooperative efforts, Madbouly revealed plans for a project to connect Egypt and Saudi Arabia with an electrical grid by the summer of 2025.
The Egyptian government has also earmarked five strategic areas along the Red Sea coast for substantial investment, including the notable location of Ras Banas, which features nature reserves, a port, and a tourist area in the southern region of the Red Sea Governorate.
Additionally, the Saudi Crown Prince Mohammed bin Salman has instructed the Public Investment Fund (the kingdom’s sovereign wealth fund) to proceed with the $5 billion investment as part of an initial phase.
This development follows discussions aimed at strengthening bilateral relations, particularly after Madbouly’s meeting with the Crown Prince in Riyadh.
