The Egyptian government has priced its $2 billion USD dual tranche bond tighter than the Initial price thoughts (IPTs) after combined books hit more than $9.8 billion.

The $1.25 billion five-year senior unsecured Reg S bond had a yield of 8.625%, compared with IPTs in the 9.25% area. Books came to over $6 billion, excluding joint lead manager (JLM) interest.

The $750 million eight-year had a yield of 9.45%, compared with IPTs in the 10% area. Books came to over $3.8 billion, excluding JLM interest.

The bonds will be listed on the London Stock Exchange. 

JPMorgan Chase & Co., Citigroup Inc., HSBC Holdings Plc, Goldman Sachs Group Inc., Standard Chartered Plc and Sumitomo Mitsui Banking Corp. are managing the offering.

The government had mandated banks to market the offering under the government’s Global Medium Term Note Programme. Egypt last sold bonds in 2023 when it raised $1.5 billion in a sukuk issuance.

In addition, the cash-strapped government is set to borrow around $40 billion from the local market during the first quarter of 2025 to meet debt obligations and finance the state’s budget deficit, local media reported.

 (Reporting by Brinda Darasha; editing by Seban Scaria)  

brinda.darasha@lseg.com