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Egypt priced a dual-tranche sukuk offering on Tuesday, raising a total of $1.5 billion across 3-year and 7-year maturities, amid robust investor demand.
The long 3-year tranche was priced at 6.375%, against initial price talks (IPTs) at 6.875%, and a spread of US Treasuries plus 277.6 basis points (bps), drawing orders in excess of $3 billion.
The 7-year tranche priced at 7.95%, versus IPTs around 8.5%, at a spread of UST+ 405.5 basis points, with books exceeding $5 billion.
The final deal size was split into $700 million for the 3-year and $800 million for the 7-year.
Combined books peaked at $5.65 billion, excluding JLM interest, skewing toward the longer-dated tranche.
Egyptian Financial Company for Sovereign Taskeek is the issuer and Egypt, represented by its finance ministry, the obligor.
The fixed rate 144A/Reg S senior unsecured dual-tranche sukuk offering is expected to be rated B–/B (S&P/Fitch).
Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank and HSBC are joint lead managers and bookrunners.
(Writing by Brinda Darasha; editing by Seban Scaria)
