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Egypt, rated Ba1/BB+/BB+, surprised the market last week when it requested proposals from banks for a second Egyptian pound-linked dollar denominated global bond just three months after launching its first international bond deal in six years.
Bankers were speculating this week that the sovereign might seek to issue a longer dated instrument of at least 10 years maturity.
In July, Egypt launched a Epound(s)6bn 8.75% 2012 bond through bookrunners Citigroup and JP Morgan. At the time, Egyptian finance minister Youssef Boutros-Ghali said the five year maturity was a good place to start building a 20 or 30 year curve.
The July deal, priced inside the country's domestic curve, attracted Epound(s)14bn of demand, leading bankers to speculate this week that frustrated investor demand led the sovereign to contemplate...