Egypt to be listed on GBI-EM index, JPMorgan says

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Cairo, Oct 13 (Businesshala) – Egyptian government bonds have been approved for inclusion in JPMorgan’s GBI-EM investment index beginning Jan. 31, the investment bank said in a research note.

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Egypt would have an estimated weight of 1.85% in the index. The note said that 14 Egyptian pounds of government bonds, totaling $26 billion, are eligible for the benchmark. The bond has an average yield of 14.9% and a tenor of 2.9 years.

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Analysts at the bank said in April that local currency bond markets would gain $1.4-$2.2 billion if Egyptian bonds were included in the index.

Egypt is also working to make its domestic debt “euroclearable”. It is still discussing some technical issues and is expected to become euroclear within a few months, but not by the pre-November target, Finance Minister Mohamed Mait said last month.

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JPMorgan’s index team placed Egypt and Ukraine on “index watch positive” in April after continued improvement in liquidity and access to onshore government bond markets for foreign investors. (Reporting by Patrick Ver Editing by Mark Heinrich)

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