Egypt expects to raise around $3 billion via a three-tranche bond sale after it received more than $9 billion in demand.

It tightened price guidance to 4.125% to 4.25% for a five-year tranche, around 6.125% for 10-year bonds and around 7.75% for 40-year notes, a document from one of the banks on the deal showed recently. Demand skewed to the longer tranches.

It had given initial price guidance of 4.25% to 4.375% for the five-year tranche, around 6.25% for the 10-year bonds and around 7.875% for the 40-year notes.

Citi, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan and Standard Chartered are arranging the deal.

This is considered to be the first eurobond sale in 2020/2021, and the second time Egypt has sold 40-year bonds, which were last featured in the $2 bn eurobond sale in 2019.

Egypt received $ 2.77 billion in emergency financing from the International Monetary Fund in May and a conditional loan of $ 5.2 billion from the fund in June.

In May, it sold $ 5 billion in three tranches of four-year, 10-year and 30-year bonds. In September, it sold $ 750 million in five-year green bonds, in the region's first sovereign issue.

In January, the IMF raised its forecast for the growth of Egypt's economy in the current fiscal year, which ends at the end of June, to 2.8 percent, which is in line with the minimum range of government estimates, indicating a contraction less than expected during the coronavirus pandemic.

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