On Tuesday, Egypt completed a $1.5 billion dual-tranche sukuk (Islamic bond) offering that saw robust investor demand. The sale was split into $700 million for the 3-year tranche, priced at 6.375%, and $800 million for the 7-year tranche, priced at 7.95%. Both tranches were priced significantly lower than their initial price talks (IPTs), reflecting the strong interest.
The offering attracted a large volume of orders, with the combined book size peaking at $5.65 billion. The longer 7-year tranche received more interest. The bonds are expected to be rated B–/B by S&P and Fitch. The deal was managed by Egyptian Financial Company for Sovereign Taskeek, with the Egyptian finance ministry as the obligor, and involved several international and regional banks acting as joint lead managers.
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