Egypt Picks JPMorgan, Natixis, Citi and BNP to Manage Bond Sale

CAIRO, Egypt, Capital Markets in Africa: Egypt picked four banks to manage a dollar bond issuance planned for 2016, part of the government’s efforts to raise $21 billion over three years to shore up reserves and end a crippling currency shortage.

JPMorgan Chase & Co., Citigroup Inc., BNP Paribas SA and Paris-based Natixis SA will oversee the sale, the finance ministry said in a statement on its website. Egypt plans to sell $3 billion to $5 billion in international bonds in the fiscal year ending June 30, with the first issuance planned for October, officials have said.

Egypt last week reached a preliminary agreement with the International Monetary Fund for a $12 billion loan program designed to restore investor confidence and balance the budget. The government also plans to raise funds from bilateral creditors, the World Bank and the African Development Bank.

The North African nation last sold Eurobonds in 2015, raising $1.5 billion, with subsequent sales postponed as borrowing costs soared. The yield on the bonds — due in 2025 — has fallen 59 basis points since the beginning of August, and stood at 6.3 percent at 9:03 a.m. in Cairo, according to data compiled by Bloomberg.

Source: Bloomberg Business News