Egypt received $16.5 billion in orders for its $3.75 billion Eurobond sale making the issuance about 4.4 times oversubscribed, the Minister of Finance, Mohamed Maait, said. Banks working on the debt sale slashed the announced initial price guidance as per the Ministry of Finance's instructions after the issuance saw strong demand from investors, Maait added in a statement on Tuesday. The issuance included the sale of $750 million in five-year bonds at 3.875 percent, $1.5 billion in 10-year bonds at 5.875 percent, and $1.5 billion in 40-year notes at 7.5 percent. The ministry aims to use the proceeds from the issuance to finance part of its budget deficit and financing needs for fiscal year 2020/2021. The proceeds will also be used to provide the required financing for dealing with the coronavirus crisis, including financing financial stimulus initiatives, healthcare needs, and social protection and human development programmes, he noted. The bond sale will also help extend the government's debt maturity and reduce the cost of public debt.
