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Egypt’s dollar bond issue attracts $14.5bn bids from investors

Egypt’s dollar bond issue attracts $14.5bn bids from investors
The yield on the four-year notes reached 4.55%

Cairo – Mubasher: Egypt’s dollar-denominated bond issue has been oversubscribed by more than seven times, receiving bids for over $14.5 billion from investors, compared to an issue size of $2 billion, the country’s minister of finance Mohamed Maait revealed.

This statement came few hours after the most populous Arab nation announced the issuance of triple-tranche US dollar-denominated bonds, Maait added in a statement on Thursday.

The tranches are issued with values of $500 million, $1 billion, and $500 million for the bonds having maturities of four, twelve, and 40 years, respectively.

The 40-year bond issue has the longest bond maturity ever of any international bond issued by Egypt, or any other country in the Middle East and North Africa (MENA) region, the finance minister pointed out.

The yield on the four-year notes reached 4.55%, down from an initial price guidance of 5%, while the yields on twelve-year and 40-year notes registered 7.05% and 8.15%, respectively, compared to initial price guidance of 7.5% and 8.6%, the deputy finance minister Ahmed Kojak revealed.

The long-term issuance will help the country reduce the debt service cost, assistant to the finance minister Khaled Abdel Rahman noted.