Egypt to issue its second dollar bonds today

Egypt is once again tapping the international bond market for the second time this year as it will issue its second dollar-denominated bonds on Thursday.

The North African country is taking advantage of low borrowing costs before the U.S. Federal Reserve decides when to taper monetary stimulus.

The issuance includes 6-year notes at an initial yield of 6.125 percent in addition to 12-year and 30-year bonds targeting yields of 7.625 percent and 8.875 percent respectively, people familiar with the matter told Bloomberg on condition of anonymity as they are not authorised to speak publicly.

Egyptian government hired banks including JPMorgan Chase & Co., Citigroup Inc., HSBC Holdings Plc and First Abu Dhabi Bank (FAB) to manage the transaction, and aims to raise $2.5 billion to $3 billion, two people familiar with the matter further told Bloomberg.

Earlier this year, Egypt tapped international markets for $3.8 billion in dollar-denominated bonds. In 2020, the country sold $750 million in green bonds.

Egypt’s external financing needs for the financial year ending in June range between $5 billion and $7 billion, according to EFG Hermes.