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Egypt’s long-awaited Eurobond launch met with a stronger than anticipated demand: potential demand for the planned $2-2.5bn issue hit $13.5bn, prompting the Egyptian authorities to hike the size of the issue to around $4bn.
Lead managers BNP Paribas, Citigroup, JP Morgan Chase and Natixis sold the $4bn of bonds in three tranches: $1.75bn of five-year paper with a yield of 6.125%; $1bn of 10-year paper at 7.5%; and $1.25bn of 30-year bonds at 8.5%.
The oversubscription could tempt Egypt to return to the international debt market sooner rather than later.
The bonds will be listed on the Luxembourg Stock Exchange. Egypt has apparently obtained tighter pricing for its issue that was first expected, prompting speculation that foreign investors interest in Egypt is improving. Egypt last issued a 10-year bond in mid-2015, priced at 6% ( MEES, 12 June 2015 ).
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