Back to the complete issue
Thursday, 4 April 2019

Gov’t raises ceiling of eurobond program to USD 30 bn ahead of issuance

The government has raised the limit of Egypt’s eurobond program to USD 30 bn from USD 20 bn, according to the prospectus (pdf) published yesterday on the Luxembourg Stock Exchange ahead of the Finance Ministry’s upcoming issuance. The prospectus listed high inflation, EGP-to-USD depreciation, a below-investment grade credit rating, and internal instability as the key risk factors to repayment, but didn’t state an explicit reason for the increase. The ministry is planning to sell up to EUR 1.5 bn-worth of eurobonds in mid-April, and reportedly began receiving bids yesterday to test the market’s appetite for the issuance, government sources said, according to a local press report. Egypt’s recent eurobond issuance in February, which saw the ministry sell USD 4 bn in USD-denominated eurobonds, was 5x oversubscribed, attracting USD 21.5 bn in bids from 250 investors.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.