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Bonds the word on wooden cubes, cubes stand on a reflective surface, in the background is a business diagram. Business and finance concept. Image used for illustrative purpose. Getty Images
The Egyptian government has mandated banks to market a USD dual tranche bond with the size capped at $2 billion.
Initial price thoughts (IPTs) are in the 9.25% area for the five-year, and in the 10% area for the 8-year tranche.
The senior unsecured Reg S offering comes under the government’s Global Medium Term Note Programme.
JP Morgan is the lead bookrunner while Citigroup Global Markets Limited, Goldman Sachs International, HSBC Bank plc, JP Morgan Securities plc, Standard Chartered Bank and SMBC Bank International plc are joint lead managers and bookrunners.
The bookbuilding opened on Tuesday and settlement date is 4 February.
Egypt is rated Caa1 (Positive) by Moody's, B- by S&P (Positive) and B (Stable) by Fitch. The bonds are expected to be rated B- by S&P and B by Fitch.
(Writing by Brinda Darasha; editing by Seban Scaria)
