Egypt sells $3bn in Eurobonds

CAIRO, May 24, (RTRS): Egypt raised $3 billion in a Eurobond sale on Wednesday, about twice as much as targeted and at lower cost than when the same bonds were first sold in January, suggesting foreign appetite for the country’s debt is growing as it makes economic reforms.

Egypt returned to international debt markets to cover its financing needs following its successful sale earlier this year of $4 billion in five-, 10- and 30-year bonds.

On Wednesday, it sold another $750 million of the five-year paper at a yield of 5.45 percent, $1 billion of the 10-year bonds at 6.65 percent and $1.25 billion of the 30-year bonds at a yield of 7.95 percent.

Order books closed at $11 billion, a document issued by one of the banks leading the deal showed.

That total shows growing confidence in the country among foreign investors, whom Egypt has sought to lure back following a 2011 uprising that drove them away.

“This is a great success and shows confidence in the economy, because even with the yields lower they were able to cover more than they requested. This means that there is great appetite and a lot of people wanted to buy the bonds,” said one Cairo-based banker.

“This shows that there is very good sentiment on Egypt and expectations that yields could fall further in the future.”