LONDON - Egypt's dual-tranche dollar bond is heavily subscribed, with its 10-year tranche for $1 billion receiving orders of about $10 billion, market sources said on Thursday. The 30-year tranche for $500 million, which was added late on Wednesday after strong demand for the 10-year paper, had bids of close on $1.7 billion, the sources said. Egypt, which is rated 'BB+' by Fitch and Standard & Poor's, has set guidance of 7 percent on the 30-year tranche and 5.875 percent on the 10-year deal. Moody's rates it 'Ba1' meaning it is a notch under investment grade. One fund manager said of the pricing: "It's not too bad. It's wide to Turkey with a better rating though political risk is an issue in Egypt." Pricing is due later on Thursday. Turkey's 2030 bond is yielding 6.4 percent and the country is rated Ba2 by Moody's and BB by S&P. Only Fitch rates it on par with Egypt at BB+.
