Eurobond sale nets $4 bil­lion

Business monthly (Egypt) - - THE NEWSROOM | IN BRIEF -

Af­ter ini­tially plan­ning to sell $2-bil­lion worth of Eurobonds, Egypt an­nounced Jan. 24 that, thanks to high de­mand, it would double the amount of bonds on of­fer and at lower-than-ex­pected yields. “We had a very strong turnout and we had a very big pres­ence from all ac­counts,” fi­nance min­is­ter Amr Garhy told Bloomberg TV in a Jan. 25 in­ter­view, adding that de­mand was cov­ered “mul­ti­ple times.” The sale in­cluded five-year bonds (with a face value of 6.125 per­cent), 10-year bonds (at 7.5 per­cent) and 30-year-bonds (8.5 per­cent), Garhy said. Ac­cord­ing to Reuters, the bond val­ues were ini­tially es­ti­mated to range from up to 6.625 per­cent on five-year notes and 8.875 on 30-year bonds—the lower yields, the agency said, in­di­cate a vote of con­fi­dence from for­eign in­vestors. “It puts us in a sweet spot for the com­ing pe­riod, for which we are plan­ning to be a fre­quent is­suer in the mar­ket,” said the min­is­ter. Last Novem­ber, he said Egypt might seek to raise as much as $6 bil­lion via in­ter­na­tional bond sales in 2017. The first is­suance was ini­tially sched­uled for late 2016 but was de­layed due to mar­ket volatil­ity fol­low­ing the elec­tion of U.S. Pres­i­dent Don­ald Trump.

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