Goldman Sachs International has issued 880,000 open end certificates divided over 2 tranches. The first tranche amounts to 500,000 certificates with a price of 10.6 Euro per certificate, worth 5.3 million Euro, to be listed and traded on Stuttgart & Frankfurt Stock Exchanges in May 2006.
The second tranche was for 380,000 certificates issued with a price of 16.42 Swiss Francs per certificate, for a total amount of 6.24 million Swiss Francs, to be listed and traded on Swiss Exchange also in May 2006.
These certificates will allow foreign investors and international institutions to invest safely in the Egyptian stock market, avoiding the risk of foreign exchange currency fluctuations. In other words, these open end certificates will serve as a hedging tool for the risk averse foreign investors, who stay away from trading on emerging markets fearing the instability of the foreign exchange markets.
This issuance is considered the third of its kind, following ABNAMRO and Deutsche Bank issuances, which reflects the foreign confidence in both the Egyptian economy as well as the Egyptian stock market.
