Egypt to Sell $1.1 Billion Local Debt as It Seeks Money Abroad
Egypt plans to raise 6.5 billion Egyptian pounds ($1.1 billion) from the sale of treasury bills and bonds today after the Finance Minster said it plans to offer debt to nationals living abroad.
The North African country will seek bids for 3.5 billion pounds of nine-month treasury bills, according to central bank data on Bloomberg. The average yield on nine-month securities at a sale last week was at a record 15.822 percent. It will also offer five- and seven-year bonds valued at 2 billion pounds and 1 billion pounds, respectively, the data show.
Egypt plans to raise at least $2 billion from the sale of Islamic bonds and certificates of deposits to Egyptians living abroad as the country seeks to reduce record borrowing costs, Finance Minister Momtaz El-Saieed said today. The offerings are planned to take place within two weeks, he said.
The country raised 45.1 billion pounds from the sale of treasury bills and bonds in January, or 31 percent less than targeted, as investors demanded higher yields, forcing the government to curb its debt issuance. The nation has increased its reliance on local banks to finance its widening budget deficit as the unrest that toppled President Hosni Mubarak a year ago deterred foreign investors.
The yield on Egypt’s 5.75 percent dollar bonds due in 2020 declined three basis points, or 0.03 of a percentage point, to 6.95 percent at 11:38 a.m. in Cairo, according to prices compiled by Bloomberg. The pound was little changed at 6.0309 a dollar.
To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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