”The government should be comfortable with these kinds of levels. However, he argued that 5.5% yield for the five-year is a little bit high.

The Cairo-based banker conceded that 7% to 7.2% for a 10-year is reasonable and realistic. The UAE-based fixed income investor suggested that a five-year yield of between 5.5% and 5.625% and a 10-year yield between 7.25% and 7.375% would satisfy his portfolio. He noted that Egypt should be priced around Pakistan or slightly lower given its larger debt levels. Jamal said given the relatively high debt to GDP, and unstable geopolitical environment, a five-year yield below 5.75% and a 10-year below 7% would be unattractive.Ī Gulf-based investor echoed Jamal’s sentiment, saying a five-year tranche should be priced around 5.8% to 6% and a 10-year tranche around 7% to 7.2%. “If you look at the neighbouring countries, they have similar demographics in that their populations are young with the potential to increase purchasing power and consumer spending, as well as diversified growing economy,” he said. In terms of comparable credits, Jamal suggested that Egypt’s North African neighbours would be a good comparison for the upcoming Eurobond. “There is investor appetite for Egyptian five- and 10-year bonds, although I’m not sure the same investor appetite is there for longer duration,” said Rami Jamal, portfolio manager at Amwal Asset Management in Qatar. However a USD 12bn three-year funding package agreed with the IMF in November – and a comprehensive economic reform package, announced yesterday, that accompanies it – could mark the start of an economic pick-up. The Arab world’s most populous country is seeking to issue a dual-tranche bond carrying five-and 10-year maturities.A recent slowdown in growth, geopolitical risks and the dual threats of social unrest and terrorism were flagged by market participants as potential concerns. The Government of Egypt kicked off a roadshow in the UAE for its proposed US dollar-denominated benchmark Eurobond on Tuesday (17 January).

Viber out rates to egypt