JP Morgan listing boosts Egypt’s access to debt markets
JP Morgan placed Egypt on its Index Watch Positive on April 9, meaning the North African country should be relisted on JP Morgan’s Government Bond Index Emerging Markets within six months.
The relisting of Egypt on JP Morgan's GBI-EM index is being hailed as a major step for the country’s capital markets.
The country’s listing may invigorate its access to cheaper sovereign debt instruments as governments worldwide bank on international bond issuances. JP Morgan placed Egypt on its Index Watch Positive on April 9 in a step toward relisting the North African country on JP Morgan’s Government Bond Index Emerging Markets within six months.
“The inclusion of Egypt in JP Morgan's GBI-EM index will help deepen the country's capital markets and provide additional pools of liquidity as it widens Egypt's access to foreign investors. The inclusion in the index will also help lengthen the maturity of the country's debt profile,” Zeinab Abdalla, director of financial institutions at Fitch Ratings, told Al-Monitor.
Egypt was removed from the index in June 2011 for failing to meet its requirements. Finance Minister Mohamed Maait said April 17 the move is in line with endeavors to reduce the cost of public debt as part of the country's economic reforms.
