Eurobond sale nets $4 billion
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.