Egypt Raises $3bn Bond

Egypt on 24 May raised $3bn in a new Eurobond issue in the international debt market, twice as much as it originally planned, encouraged by strong market appetite for its previous $4bn Eurobond sale in January ( MEES, 27 January ).

The new issue consisted of $750mn of five-year paper at 5.45%; $1bn of 10-year bonds at 6.65%; and $1.25bn of 30-year bonds at 7.95%. Pricing on each portion was considerably tighter than for the January issue (see chart), reflecting the IMF’s recent increased backing of Egypt and cash inflows that saw foreign reserves hit $28.6bn at end-April, their highest level since 2010 ( MEES, 19 May ).

IMF BOOST

Last August, the IMF approved a three-year $12bn loan facility to Egypt, of which $4bn has already been disbursed, to help in the implementation of Cairo’s economic reform program. (CONTINUED - 271 WORDS)

DATA INSIDE THIS ARTICLE

chart Egypt 2017 Bond Issues: May Pricing Tightens From January (%)