Egypt has raised $4bn in new debt, in the latest sign that investors’ appetite for relatively risky sovereign paper has been undimmed by the recent market turmoil.
The bonds were issued at three maturities, with a five-year tranche and a 10-year tranche raising $1.25bn each, while a 30-year tranche raised $1.5bn. The yields on the bonds were 5.577 per cent, 6.588 per cent and 7.903 per cent, respectively.
The 30-year debt sale follows on from last January’s multi-tranche offering, in which Egypt raised $4bn in five-, 10- and 30-year maturities priced at yields of 6.125 per cent, 7.5 per cent and 8.5 per cent. That came shortly after receiving an IMF bail-out in late 2016.
Emerging market countries, banks and companies have sold long-dated debt in record volumes in recent months, as investors’ search for yield pushes them to expand their appetite for risk.
This week’s issuance attracted $12bn in orders from investors, Egypt’s foreign ministry said. The cash will be used to support its foreign reserves.
Citi, First Abu Dhabi Bank, HSBC, JP Morgan and Morgan Stanley acted as bookrunners on the deal. Egypt is rated B- positive by S&P and B positive by Fitch.
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