Egypt Sells $3 Billion of Bonds

Egypt joined a rush of emerging-market governments taking advantage of low borrowing costs.

26.09.21

Egypt sold $3 billion in its second Eurobond issuance of the year, joining a rush of emerging-market governments taking advantage of low borrowing costs before the U.S. Federal Reserve starts tapering its pandemic stimulus.

The issuance was three times oversubscribed, with total bids of $9 billion by more than 300 investors from U.S., Europe, Asia, Middle East and Africa, the Finance Ministry said Friday in a statement.

The sale included $1.125 billion of six-year notes at a yield of 5.8%, $1.125 billion in 12-year notes at a yield of 7.3%, and $750 million in 30-year bonds at 8.75%. Demand from investors helped cut final yields on the six- and 12-year notes by 32.5 basis points, and by 12.5 basis points on the 30-year bonds, the ministry said.

JPMorgan Chase & Co., Citigroup Inc., HSBC Holdings Plc, First Abu Dhabi Bank and Standard Chartered managed the transaction.

Emerging-market bond sales are springing back to life as governments seek to raise money while it’s still cheap. The past week shattered a summer lull for dollar- and euro-denominated debt, bringing $36 billion of issuance from governments and companies after the previous 10 weeks saw only $90 billion raised. Sales from Indonesia, Turkey, Chile, Serbia and Hungary were all met with robust investor demand.

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