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Monday, 23 September 2019

Egypt to tap int’l banks to manage USD 2.5-3 bn eurobond issuance within three weeks

Gov’t to begin talks with banks over USD 2.5-3 bn eurobond issuance within three weeks: The Finance Ministry expects to begin talks within three weeks with some 20 international investment banks and 7-8 local and international law firms to advise on a USD 2.5-3 bn issuance of USD-denominated eurobonds on the Luxembourg Stock Exchange, government sources told the local press. JPMorgan, Morgan Stanley, Natixis, BNP Paribas, HSBC, and Citibank are among the investment banks the ministry plans to approach, the sources reportedly said. Four or five banks in total will be enlisted to manage the planned issuance. The government will choose the advisers by the end of October, with an eye to issue the bonds either at the end of this year or the beginning of 2020.

Background: The ministry had received cabinet approval to issue USD 5 bn-worth of eurobonds this fiscal year, which began in July. The government, which earlier this year raised the limit of its eurobond program to USD 30 bn from USD 20 bn, last issued eurobonds in April when it sold EUR 1.25 bn in 12-year bonds at a 6.375% yield and EUR 750 mn in six-year bonds at a rate of 4.75%.

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