Egypt expected to sell up to $3bln in bonds

Citi, First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered arranged the debt sale.

  
Central Bank of Egypt's headquarters is seen in downtown Cairo, Egypt, June 7, 2017. Image used for illustrative purpose.

Central Bank of Egypt's headquarters is seen in downtown Cairo, Egypt, June 7, 2017. Image used for illustrative purpose.

REUTERS/Mohamed Abd El Ghany

DUBAI - Egypt sold $3 billion in three-tranche bonds on Thursday and tightened the yield across the portions after attracting more than $8.25 billion in demand for its second bond sale of 2021, a bank document showed.

It sold $1.125 billion in six-year bonds at 5.8%, $1.125 billion in 12-year paper at 7.3% and $750 million in 30-year notes at 8.75%, the document from one of the banks on the deal showed.

Initial price guidance was around 6.125%, 7.625% and 8.875%, respectively.

Egypt regularly taps the international debt markets to fund budget shortfalls and expects a deficit of 6.6% in the fiscal year ending in June 2022.

Citi, First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered arranged the debt sale.

The bonds will be listed on the London Stock Exchange.

Egypt raised $3.75 billion in another three-tranche deal in February following a $750 million debut green issuance a year ago, which was the first sale of bonds earmarked for environmentally-friendly uses by a Middle East sovereign.

Earlier this month, Deputy Finance Minister Ahmed Kouchouk said Egypt intends to increase the number and frequency of its green bond sales after last year's issuance. The finance ministry said in August it would start selling sukuk - shariah-compliant bonds - in the first half of next year.

(Reporting by Yousef Saba; Writing by Davide Barbuscia and Yousef Saba; Editing by Alison Williams and Alex Richardson) ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))


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