Clifford Chance

Clifford Chance advises on Egypt's first samurai bonds issuance

Leading international law firm Clifford Chance has advised the Ministry of Finance of the Arab Republic of Egypt with respect to its inaugural issuance of US$496 million (JPY60 billion) samurai bonds due 2027. Issued on a private placement basis, the bonds mark the first sovereign samurai bond issued by a country from the African continent or from the Middle East. The bonds were also issued with an original and first-ever attempted credit enhancement scheme.

The bonds are guaranteed by a Japanese commercial bank (Sumitomo Mitsui Banking Corporation, SMBC), and Nippon Export and Investment Insurance (NEXI) provides an insurance to SMBC for its payments under its guarantee obligation. SMBC Nikko Securities Inc. acted as the lead arranger.

Tokyo Co-Managing Partner Reiko Sakimura said, "We are delighted and honoured to advise on this unique and historically important market first transaction for Egypt. Our experienced team continues to demonstrate its deep integrated expertise in sovereign capital markets and loan transactions in Japan and overseas, as the successful issuance paves the way for other emerging economies' return to international bond markets in light of tightening market conditions."

Reiko was supported by a team in Tokyo including counsel Chihiro Ashizawa and associates Tomoki Goto and Tatsuya Nakano.

The firm has a track record of advising on market-leading and innovative debt issuances such as the United Arab Emirates' first bond issuance, the first US dollar sustainability linked bond in Asia (ex Japan) and the first investment grade green project bond from the private sector in Indonesia.