Egypt sells $3 billion of Eurobonds in second international debt sale of 2021

Egypt has sold $3 billion in its U.S. dollar-dominated Eurobond issuance, tapping the international bond market for the second time this year.

The North African country is joining a rush of emerging-market countries that take advantage of low borrowing costs before the U.S. Federal Reserve starts tapering its pandemic stimulus.

The Eurobond issuance was three times oversubscribed, with total bids of $9 billion by over 300 investors from U.S., Europe, Asia, Middle East, and Africa, according to a statement issued by the Egyptian Finance Ministry on Friday.

The sale comprised $1.125 billion of 6-year notes at a yield of 5.8 percent, $1.125 billion in 12-year notes at 7.3 percent, and $750 million in 30-year bonds at 8.75 percent.

Demand from investors helped cut final yields on the 6 and 12-year notes by 32.5 basis points, and by 12.5 basis points on the 30-year bonds, the ministry statement added.

JPMorgan Chase & Co., Citigroup Inc., HSBC Holdings Plc, First Abu Dhabi Bank and Standard Chartered have managed the transaction.

Finance Minister Mohamed Maait said the proceeds of the issuance would help provide extra foreign exchange for the country, which will be used in partially covering its financing needs in the current financial year 2021/2022.

Earlier this year, Egypt tapped international markets for $3.8 billion in dollar-denominated bonds earlier this year, witnessing a strong demand from investors resulting in bringing down the final yields on each of the notes it issued by 37.5 basis points.