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Egypt Ministry Seeks Bank Proposals for 2016 Dollar Bond Sale
CAIRO, Egypt, Capital Markets in Africa: Egypt requested proposals to issue dollar bonds in 2016, part of its efforts to shore up reserves and end a dollar shortage that is hampering economic growth.
In an advertisement published in the Financial Times newspaper, the Finance Ministry announced it was seeking lead managers for the issue. The deadline for submitting proposals is Aug. 11, it said.
Egyptian officials are in talks with the International Monetary Fund to secure a $12 billion, 3-year loan as the government seeks to restore investor confidence, re-balance the budget and end the currency crunch. If secured, the IMF deal will help reduce the country’s borrowing costs in the international market, Deputy Finance Minister Ahmed Kouchouk said last week.
Egypt aims to issue $3 billion to $5 billion in Eurobonds in the current fiscal year which ends June 30. The first issuance is planned for October, Prime Minister Sherif Ismail said last week. The government last sold Eurobonds in 2015, raising $1.5 billion. Since then, officials have postponed sales as Egypt’s borrowing costs soared.
Yields on Egypt’s Eurobonds due in 2025 have tumbled 63 basis point since the IMF talks were announced on July 27. They stood at 6.8 percent at 10:28 a.m. in Cairo, according to data compiled by Bloomberg.
Source: Bloomberg Business News