|21 May, 2020

Egypt to raise $5bln in three tranches of bonds - document

The sale is expected to close later on Thursday.

An employee counts Egyptian pounds in a bank in Cairo, Egypt, November 3, 2016.

An employee counts Egyptian pounds in a bank in Cairo, Egypt, November 3, 2016.

REUTERS/Mohamed Abd El Ghany

DUBAI- Egypt is expected to raise $5 billion in bonds in three tranches with maturities of four, 12 and 30 years, a document showed on Thursday.

Egypt's economy has been pressured by the novel coronavirus pandemic, which has shut down its tourism sector, a key source of foreign revenue.

Egypt offered investors 5.75% on the four-year tranche, 7.625% on the 12-year bonds and 8.875% on the 30-year notes, a document from one of the banks leading the deal showed.

Those levels were 50 basis points lower than where it began marketing the bonds earlier on Thursday. The deal attracted around $21 billion in orders, the document showed, with a skew towards the 30-year tranche.

The deal comes after the International Monetary Fund said earlier this month that it had approved $2.77 billion in emergency financing for Egypt to weather the pandemic.

As of Wednesday, Egypt had reported 14,229 confirmed cases of the coronavirus and 680 deaths.

The government has taken steps to contain the outbreak, including a night curfew and the closure of cafes and mosques, but has stopped short of imposing a full lockdown as it seeks to keep the economy going.

Egypt hired BNP Paribas, Citi, HSBC, JPMorgan and Standard Chartered to arrange the debt sale, which is expected to close later on Thursday.

(Reporting by Yousef Saba and Davide Barbuscia; Editing by Alison Williams/Emelia Sithole-Matarise/Pravin Char) ((Yousef.Saba@thomsonreuters.com; +971562166204))

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