Egypt will start talks this month with European banks to issue euro denominated Eurobonds -the finance minister told Reuters.
The value of the issue is expected to be 1-1.5 billion euros and will be sold next April, he added.
Egypt returned to the international bond markets on Wednesday with issuing Eurobonds worth $4 billion on three tranches; three, five and 30 years, the Finance Ministry said in a statement Wednesday.
The bonds were issued in five، 10- and 30-year tenors at 5.58 pct، 6.59 pct and 7.9 pct، respectively - prices on par with Eurobonds it sold last May.
The issuance attracted $12 billion in bids، and were sold “despite the instability of the global market، which reflects the great confidence in the Egyptian economic reform programme،” Finance Minister Amr El Garhy told Reuters.
The purchase requests exceeded $12 billion in the first few hours after the issuance despite the volatility of the international stock markets, the statement said, adding that this reflects the increased interest for foreign investors in the Egyptian Economy in light of the economic reforms.
The outturn will be used to bolster the central bank’s foreign currency reserves, while the cash equivalent in Egyptian pounds will be directed to finance the activities of the state budget, the statement said.
Deputy Minister of Finance for Financial Policies Ahmed Kojak said that the Egyptian issue in the international markets has attracted more than 550 international investors from all target markets: Europe, America, Asia and the Middle East.
He added that they had received orders to buy bonds in large numbers, exceeding $500 million per investor.