Egypt to sell more five-, 10- and 30-year Eurobonds

Cairo

Egypt will tap international debt markets on Wednesday for the second time in just five months, a finance ministry official told Reuters, offering investors a chance to buy more of the dollar-denominated Eurobonds it sold in January.

The official said details of the “record size” bond sale would be announced later on Wednesday.

Egypt has said it plans to raise another $1.5-$2 billion this year to cover its financing needs following January’s sale of $4 billion in five-, 10- and 30-year bonds, which raised twice as much as targeted and at lower yields than expected.

That signalled strong appetite among foreign investors for Egyptian debt just months after the country floated its currency and embarked upon an ambitious economic reform programme that has been widely praised by investors.

In November, Egypt signed a three-year $12 billion International Monetary Fund programme attached to sweeping reforms such as subsidy cuts and tax hikes aimed at luring back investment to its dollar-starved economy.

The country of over 90 million people has sought a variety of funding sources, from development loans to foreign grants and aid.