Egypt Returning to The International Market For The 2nd Time With an Offering of $3.75 Billion

The Egyptian Ministry of Finance said that it was able to implement the issuance of international bonds worth $ 3.75 billion in three tranches (5, 10 and 40 years) with issued values ​​of $750 million, $1.5 billion, and$ 1.5 billion, respectively.

More than 400 investors have applied to buy and subscribe to Egyptian international bonds, of whom 40 new investors are subscribing for the first time in Egyptian international bonds, while the volume of subscription applications by foreign investors has reached $16.5 billion during the offering, representing a coverage ratio of 4.4 times. Of the $3.75 billion IPO value.

The ministry’s statement indicated that with the end of the offering, the Ministry of Finance was able to offer a 5-year bond with an interest rate of 3.875% in exchange for an opening return announced to investors of 4.25%, 10-year bonds of 5.875% against an opening return of 6.25% and 40-year bonds at an interest rate It stood at 7.50% against an opening return of 7.875%.

It should be noted that interest rates on Egyptian international bonds issued in November 2019, before the pandemic, were higher, as the interest rate on 4-year bonds reached about 4.55%, 12-year bonds reached 7.053%, and 40-year bonds reached 8.15%. .