Egypt this week issued $2 billion in dollar bonds for the first time in almost two years.
This step could indicate the beginning of the Egyptian economy's recovery from its worst economic crisis in decades. The timing of the issuance is interesting - a little more than a week after the announcement of a ceasefire in the Gaza Strip, which, if maintained, is expected to benefit the Egyptian economy.
The bonds were divided into two categories - $1.25 billion for five years with a yield of 8.625% and $750 million for eight years with a yield of 9.45%. Demand from investors exceeded all expectations - close to $10 billion. Egypt recently sold dollar-denominated bonds in 2023, raising $1.5 billion.
As part of its broader financial strategy, Egypt also plans to borrow about $40 billion from the domestic market in the first quarter of 2025 to meet its debt obligations and address the country's budget deficit.