Egypt hits bond sale target

Jul 26, 2011

Egypt's Ministry of Finance has met its target of raising £3 billion (€3.39 billion) after selling two-year bonds on the international market.

This was the first time the country has made debt available for purchase since February and the popularity of the bonds - which were sold with a 13.1 per cent coupon - could boost demand for short-term securities among foreign investors, Bloomberg reports.

Parliamentary elections are due to take place in the country during the fourth quarter of 2011 and John Bates of Silk Invest in London told the news agency that Egypt's bond market has been "pretty resilient" in the face of the political upheaval that took place in the nation earlier this year, as well as recent protests in the capital, Cairo.

"All in all, we're reasonably positive on the long-term picture for Egyptian bonds," he remarked.

Bloomberg recently reported Egypt intends to raise $1 billion (€690 million) through the sale of Eurobonds in 2011, in a bid to tackle the country's widening budget deficit and diversify borrowing.