Egypt issues $2 bln in int’l bonds market, 1st time since 2021

The bonds were issued in two tranches with 5- and 8-year maturities, offering indicative yields of 9.25 percent for the first tranche and 10 percent for the second. The issuance is set to be settled on 4 February.

The funds raised will help bridge a financing gap estimated at around $10 billion for the current fiscal year (2024-2025), which concludes in June.

Egypt has faced mounting debt pressures, with its total debt amounting to $152 billion by the end of November.

Prime Minister Mostafa Madbouly revealed in December that Egypt repaid approximately $7 billion of its due debts in November and December, bringing the total amount repaid in 2024 to $38.7 billion.

The International Monetary Fund (IMF) reported that Egypt’s total debt has decreased by around 7 percent in the 2023/2024 fiscal year, falling to 89 percent of GDP from 95.7 percent in the previous fiscal year.

Egypt is currently under an $8 billion Extended Fund Facility (EFF) loan programme with the IMF.

As part of this agreement, the country is set to receive a $1.2 billion tranche, the fourth and largest loan installment so far.

In December, the European Union (EU) disbursed one billion euros in loans to Egypt, fulfilling the policy conditions under the ongoing Macro-Financial Assistance (MFA) programme.

In 2021, Egypt raised $6.75 billion through a sovereign bond offering, marking the last major Eurobond issuance.

Minister of Finance Ahmed Kouchouk stated last week, on the sidelines of the World Economic Forum in Davos, that Egypt's total planned bond issuances in international markets over the next six months will not exceed $4 billion.

He emphasized that the second half of the 2024-2025 fiscal year would witness multiple debt offerings, signalling Egypt's return to the global debt market. The majority of these issuances are expected to be denominated in US dollars.