Egitto 6.875% 30.04.2040 ISIN XS0505478684

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Egypt Distressed Bonds Attract Yield Hunters on Asset-Sale Bets

Investors are looking anew at Egypt’s bonds after signs of progress in its plans to sell state assets.
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The market sees about a 20% probability of default by December next year and a higher chance of 55% by the end of 2026, after the IMF program ends, Zusman said. The calculations assume investors would recover 35% of the Egyptian bonds’ value if the government failed to adhere to its debt commitments, he said.

“The market thinks that Egypt will likely be able to make all the payments in the next one to two years, but is pessimistic about the long-term,” said Zusman, a former emerging-markets strategist at hedge fund Pharo Management. “This is why the short-end has outperformed.”
 
UPDATE 1-World Bank's IFC to help Egypt monetise state assets
18/06/2023 16:58 - RSF
(Recasts with IFC statement, adds background in paragraph 5)
CAIRO, June 18 (Reuters) - The International Finance Corporation (IFC) said on Sunday it would act as the strategic advisor for Egypt's plans to boost the role of the private sector in the economy.

The IFC said it would advise on the government's "asset monetization programme, which will focus on harnessing private capital and know-how to manage state-owned assets".

That will include structuring and preparing assets for sale, the IFC said in a statement.

Last year Egypt's government announced a state ownership policy designed to identify areas of the economy in which the private sector can play a bigger role.

Egypt has been struggling to manage an acute foreign currency shortage, attract new investment and contain a rising debt burden. The state, including the military, has tightened its control of the economy in recent years despite pledges of structural reform.

"We will have a five-year partnership with the World Bank's IFC to guarantee the governorship of the program in the long term," Prime Minister Moustafa Madbouly said on Sunday in a televised conference with IFC Managing Director Makhtar Diop.

(Reporting by Omar Abdel-Razek, Muhammad Al Gebaly and Aidan Lewis; editing by David Evans)
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