JP Morgan said on Thursday that it has placed Egypt and Ukraine under review for inclusion in the Emerging Markets Group of Government Bond Index (GBI-EM).
If listed in the index, Egypt's weight would be around 1.8% in GBI-EM Global with 14 Egyptian government bonds at a total value of $24 billion under review for eligibility.
Ukraine could weigh as much as 0.12% in GBI-EM Global Diversified if included, with a single bond with a face value of $1.5 billion under review for eligibility.
The bank said that emerging economies like Indonesia, Mexico, Thailand and Brazil are expected to experience the largest drop in their weights if Egypt and Ukraine are included in GBI-EM.
The inclusion would also pave the way for adding Egypt and Ukraine to the ESG GBI-EM, which applies an environmental, social and administrative screening and screening methodology.
JP Morgan said it has placed both countries, who has received the amount of fund from the IMF, on a positive monitoring index after steady improvement in liquidity and access to internal government bond markets for foreign investors.
An update on the possible listing would be provided in the next six months, the bank pointed out.
GBI-EM Series tracks emerging market government bonds in local currency, with more than $250 billion in assets that follow the benchmark.
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