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Egypt has launched a benchmark-sized US dollar-denominated social bond with an eight-year tenor, with initial price thoughts (IPTs) in the 8% area.
The senior unsecured notes, issued under Rule 144A/Reg S, are expected to price on Thursday and will mature on May 20, 2034.
Citi is acting as global coordinator, bookrunner and dealer, alongside joint lead managers and bookrunners Crédit Agricole CIB, Deutsche Bank and HSBC. Citi and HSBC are also acting as joint sustainability structuring banks.
The sovereign is rated Caa1 (positive) by Moody’s and B (stable) by S&P Global Ratings and Fitch. The bond is expected to be rated B by both S&P and Fitch.
The bonds, which will be listed on the London Stock Exchange’s main market, will carry a fixed coupon, payable semi-annually in arrears.
Proceeds will be used to finance or refinance eligible social projects in line with Egypt’s Sovereign Sustainable Financing Framework.
(Writing by Brinda Darasha; editing by Seban Scaria)
