Egypt’s economic reboot fuels bond market return with $2B sale
Egypt is making big moves to resuscitate its economy.
News arrived on Jan. 28 that Egypt is kicking off an international bond sale that could raise $2 billion, which may serve as a test for the North African nation's economic turnaround amid improved investor sentiment.
This marks the North African nation’s first dollar bond issuance in years and comes after it secured a global financial bailout worth nearly $60 billion in 2024. That rescue pulled the indebted county back from the brink of economic collapse and helped dispel default fears.
The new issuance includes five-year and eight-year notes, with initial yield talk of 9.25% and 10%, respectively, Bloomberg reported, citing unnamed sources. This comes after Finance Minister Ahmed Kouchouk said in September 2024 that Egypt hoped to raise $3 billion in external debt during the 2024-25 financial year, which ends in June.
Notably, this new deal emerges just days after Egypt was reported to have secured a $2 billion syndicated loan from a consortium of regional banks on Jan. 24, with the proceeds used to finance the country’s budgetary requirements. Yet the country’s finance ministry quickly dismissed these reports.
