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Sunday, 7 April 2019

Egypt closes EUR 2 bn eurobond issuance in final int’l debt auction for FY2018-19

Egypt closes EUR 2 bn eurobond issuance in final international debt auction for FY2018-19: Egypt sold EUR 2 bn worth of six- and 12-year EUR-denominated bonds in an issuance that went to market on the London Stock Exchange on Thursday, according to a Finance Ministry statement (pdf). The offering was more than 4x oversubscribed, attracting EUR 9 bn in requests from more than 450 investors. The issuance was made up of EUR 750 mn in six-year bonds and EUR 1.25 bn in 12-year notes, carrying yields of 4.75% and 6.375%, respectively, according to Reuters. 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.

Egypt will not tap the international debt market again before the next fiscal year, which begins on 1 July, the Finance Ministry said in the statement. The government announced last week it has raised the limit of Egypt’s eurobond program to USD 30 bn from USD 20 bn, according to the prospectus (pdf) published on the Luxembourg exchange.

Advisors: Banca IMI, BNP Paribas, Natixis, and Standard Chartered Bank were bookrunners for the issuance. Dechert LLP acted as international counsel, while Al Tamimi & Co. was domestic legal counsel.

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