Egypt plans $2.5-3 billion Eurobond by mid-January

Egypt plans to issue its $2.5-3 billion Eurobond by mid-January and will seek to issue another international bond of a similar value in the second half of 2017, state news agency MENA quoted Finance Minister Amr El Garhy as saying on Monday. Egypt had planned to begin a road show for its initial Eurobond issuance in November but later said this may be delayed by some weeks due to market volatility.

The country of over 90 million has been seeking a variety of funding sources, from development loans to foreign grants and aid, to plug its financing needs as it struggles with an acute dollar shortage that has hampered its ability to import. The central bank abandoned its currency peg of 8.8 pounds to the US dollar on November 3 and raised interest rates by 3 percent in a move it hopes will unlock currency inflows and bring back foreign investors who were driven away after a 2011 uprising.

Yields on Egyptian treasuries jumped significantly in auctions following the flotation of the pound and the surprise rate hike but later dropped as demand for government debt rose. Garhi, who was speaking at a financial conference in Cairo, said foreign investment in Egyptian treasury bills and bonds reached around $500 million in the two weeks following the float, MENA reported.