The Egyptian government last week tapped the international bonds markets for the first time since the January revolution in 2011.
Egypt sold $1.5 billion of 10-year bonds at a yield of 6 per cent, the offering received a noticeable interest with more than $4.5 billion of investor orders offered , according to a statement by the lead managers of the issue.
This marks a change of heart towards the country’s debt and equity issues after foreign portfolio investors fled the country in 2011, freezing it out of the international debt market.
This is triggered by a better economic performance thanks to a set of economic reforms and an inflow of generous Gulf aid.
Gross domestic product is expected to grow by at least 4 percent in the current fiscal year, its highest in five years. while the yield on Egypt’s dollar bonds maturing in 2020 has plunged close to 4 percent, from almost 11 percent in June 2013.
Egypt had to turn to foreign debt market as its foreign currency sources, investments and tourism, haven’t recovered enough to cover its needs especially that of fuel and food imports.
