Egypt will raise $3 billion by selling dollar bonds maturing in as long as 40 years as it seeks to take advantage of low borrowing costs and investors’ hunger for returns.
The North African nation launched securities due in five, 10 and 40 years paying yields of 3.875%, 5.875% and 7.5% respectively, according to people familiar with the matter, who aren’t authorized to speak publicly and asked not to be identified. The initial price talk ranged from 4.25% to 7.875%.
The debt sale will help Egypt cover its financing needs of around $8 billion for the fiscal year ending in June, according to Cairo-based investment bank EFG Hermes. The coronavirus pandemic has cut into the nation’s main sources of foreign currency, including Suez Canal receipts and tourism.
-ALJAZEERA