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North African nation Egypt tapped the international bond markets with a three-tranche bond issuance totaling $3.75bn. It raised:
The new bonds are expected to be rated B/B+ in line with the issuer rating. This is the largest dollar deal from Africa since Egypt’s $5bn issuance last May. Cairo-based investment bank EFG Hermes said that proceeds from the issuance will help the nation cover its financing needs of ~$8bn for the year ending June. Mohamed Abu Basha, the head of macroeconomic research said, “It’s a good time for the issuance, considering the drop in yields over the past few months and the positive outlook for emerging markets this year.” Egypt’s older 7.625% bonds due 2032 and 8.875% bonds due 2050 issued last May have delivered a double-digit price return (ex-coupon) to investors since issuance, returning over 13% and 16% to currently trade at 113.2 and 116.4 respectively.
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