CAIRO: Egypt has raised 2 billion euros (Dh7.35 billion) in a dual-tranche euro-denominated bond sale that closed on Monday, the finance ministry said in a statement, its first issue in the currency since it began tapping international markets.
The bonds were issued with maturities of eight and 12 years at 4.75 per cent and 5.625 per cent, attracting an overall 7.5 billion in orders.
“The offer was covered at very good prices, and is better than any previous offer by Egypt,” the statement said.
The country sold $4 billion (Dh14.69 billion) in dollar-denominated bonds in February, as part of a drive to plug its budget deficit and boost dollar holdings.
In late 2016, Egypt agreed to a three-year $12 billion IMF loan programme tied to sweeping reforms that include tax increases and subsidy cuts.
Foreign debt has surged since, reaching $80.8 billion at the end of the first quarter of the 2017-2018 fiscal year.
The finance ministry said the latest Eurobond issuance would be used to boost central bank reserves, which stood at $42.611 billion at the end of March, while the cash equivalent in Egyptian pounds would be used to plug the budget deficit.
Egypt’s domestic borrowing costs meanwhile have fallen as the central bank cut rates by 100 basis points last month. Economists expect rates to continue to fall on the back of declining inflation.
— Reuters
