Egypt successfully raises $4bn triple tranche bonds in London

  • New notes start trading on London Stock Exchange’s Main Market
  • Egypt will use the proceeds to finance the country’s fiscal debit
  • Reinforces London’s status as Egypt’s funding partner of choice 

London Stock Exchange Group (LSEG) welcomed yesterday Egypt’s $4 billion triple tranche bonds to the Main Market. The bonds, listed solely in London, are also available to trade on LSEG’s MTS BondVision, the Group’s multi-dealer-to-client trading platform for government bonds.

The listing raised $1.25 billion in five year notes at a yield of 5.577 percent, $1.25 billion in ten year notes at a yield of 6.588 percent, and $1.5 billion in 30 year notes at a 7.903 percent yield. Despite market volatility, the order book peaked at $12.5 billion. Egypt will use the proceeds from each tranche of notes to finance the country’s fiscal debit for each relevant fiscal year. The listing comes less than a year after Egypt’s landmark $7 billion bond issuance on London Stock Exchange in the first half of 2017.

London Stock Exchange Group has long history of supporting the development of emerging economy capital markets and Egypt’s international debt listings build on the recent pipeline of high profile sovereign, supranational, municipal and private company bond issuances on London Stock Exchange.

Nikhil Rathi, CEO, London Stock Exchange plc:

“As a global market, London Stock Exchange is committed to supporting Egypt’s economic development and growth programme through capital raising on our markets.

 

“We are honoured to welcome Egypt’s multi-tranche bond listing to our markets, which reflects the City’s ability to provide a deep, liquid and complimentary channel of finance for the development of the country.

 

“With 15 Egyptian companies on our markets and over $13 billion raised in equity and debt capital since 2004 by the Egyptian government and businesses, London is the natural partner to Egypt.”

Amr-Al Garhy, Finance Minister, Egypt:

"Egypt is progressing steadily and firmly with its ambitious economic reform program. Regaining investors confidence and improving Egypt's economic prospects have been key achievements for us.

 

“Partnering with LSEG proved to be an important catalyst for Egypt both in terms of outreach to international investors and taping one of the deepest and liquid financing venues in the world. We are keen to further enhance and diversify our successful engagement in the coming period for the mutual benefits of both sides. "

 

John Casson, UK’s Ambassador to Cairo:

Every time LSEG and Egypt partner up, it gives Egypt unique access to London’s deep and liquid pools of international investment capital, and sends a powerful message of investor confidence in Egypt’s future. A great example of the synergies that make UK Egypt’s top partner in building an economy for all Egyptians”

 

The Rt Hon Alistair Burt MP, Minister of State, Foreign and Commonwealth Office and Department of International Development:

I’m delighted that Egypt has again chosen London to raise capital through the issue of this sovereign bond. London’s international investor base and unparalleled liquidity shows the City of London is ideally placed to offer an important funding channel for Egypt’s economic development. This will send a strong message of global investor support for Egypt’s economic reform programme.”

London Stock Exchange Group has a long history of supporting the development of African capital markets and investment in African companies.

  • In June 2017, LSEG welcomed Nigeria’s first Diaspora Bond raising $300 million
  • In April 2017, LSEG and the Nigerian Stock Exchange renewed their capital markets agreement, originally signed in 2014 to support African companies seeking dual listings in London and Lagos
  • Seplat was the first Nigerian company to simultaneously dual list equity shares in London and Nigeria
  • In March 2017, LSEG launched its inaugural ‘Companies to Inspire Africa’ report, a landmark publication  identifying hundreds of the fastest-growing and most dynamic private businesses across Africa, 5 Egyptian companies were included
  • In March 2016, LSEG established an Africa Advisory Group, bringing together 12 distinguished business leaders, policymakers and investors from across Africa, to discuss the challenges and opportunities presented by the development of the continent’s capital markets
  • In June 2014, LSEG signed a strategic agreement with Casablanca Stock Exchange to share its expertise on the full exchange business chain, from listing to trading, and from clearing to settlement and custody with a commitment to position Casablanca’s capital markets and financial infrastructure as a regional hub
  • There are currently 19 African sovereign bonds listed in London, from Egypt, Gabon, Ghana, Namibia, Nigeria and Zambia
  • There are 106 African companies listed or trading on London Stock Exchange – more than on any other international stock exchange
  • There are 15 Egyptian companies listed on London Stock Exchange, with a combined market capitalisation of $13.3 billion
  • LSEG market infrastructure technology is deployed in more 12 African markets, including Nairobi Securities Exchange, Botswana Stock Exchange, Casablanca Stock Exchange and Johannesburg Stock Exchange

 

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