Five-year bond sale trimmed in Egypt
Egypt failed to sell all of its five-year bonds offered at auction on Monday, it has been revealed.Egypt failed to sell all of its five-year bonds offered at auction on Monday, it has been revealed.
The Finance Ministry announced just half of the reopened five-year bonds up for sale were sold, Reuters reports.
Maturing on January 17th 2017, the bonds carry a 16.35 percent coupon and the bank originally asked for 2 billion Egyptian pounds (€250 million) before cutting the sale to 1 billion pounds.
Bond yields ranged from 16.65 to 16.85 percent, which was an increase of between 16.6 to 16.75 percent on an auction held last week, the news provider noted.
Similarly, none of the reopened seven-year bonds - which mature on October 25th 2018 and carry a coupon of 14.5 percent - were purchased.
In October last year, Egypt sold five-year treasury bonds at an average yield of 14.26 percent, which was lower than the 14.42 percent average forecast by analysts surveyed by Bloomberg.
Seven-year bonds had an average yield of 14.52 percent.