EGYPT : ISSUANCES ARE MULTIPLYING ... WITHOUT LOSING THEIR ATTRACTIVENESS
Egypt has just successfully issued its first Eurobond in 2021. Used to this channel for its debt raising, Egypt has achieved its 13th Eurobond issuance since 2010. In total, its issues have reached $ 38,9 Bn over this period. It is considered as the first issuer in the African continent well ahead of South Africa with a total amount of $ 21.7 Bn.
This last issue of February is singular. Indeed, this is the second time in its history that Egypt has sold 40-year bonds, which were last featured in the $ 2 Bn Eurobond issue in 2019. As a whole, the operation concerns a total amount of $ 3.75 Bn subdivided into three tranches of 3 maturities of 5 years, 10 years and 40 years.
However, the high frequency of issuance from Egypt does not affect its attractiveness. Investors’ Demand exceeded $15 Bn, i.e. an oversubscription rate of 4.0x. This strong Demand allowed Egypt to revise downwards its initially proposed yields to 4.25%, 6.25% and 7.875% to lower thresholds of 3.875%, 5.875% and 7.500% for maturities of 5 years, 10 years and 40 years respectively. It should be remembered, that in absolute terms, these yields are significantly lower than those of the previous issue of May 2020 although the maturities are longer, thus denoting the investors’ confidence in the Egyptian signature.
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