Feb. 22 (Bloomberg) -- Egypt will offer 7 billion pounds ($1.2 billion) in local debt tomorrow after yields fell at last week’s sale as the government said it’s closer to getting International Monetary Fund aid. The 2020 dollar bonds rose.
The North African country will seek bids for six-month and one-year notes valued at 3 billion pounds and 4 billion pounds, respectively, according to Central Bank of Egypt data on Bloomberg. The average yield on one-year bills fell one basis point, or 0.01 of a percentage point, to 15.965 percent at a sale last week. It had risen in the previous 16 auctions. The rate on six-month notes declined two basis points last week to 14.918 percent.
Egypt will sign an agreement with the International Monetary Fund for a $3.2 billion loan in March, state-owned Al Ahram reported Feb. 19, citing Finance Minister Momtaz el- Saieed. The nation needs to secure IMF money as part of its drive to meet financing needs of about $11 billion by June 2013, el-Saieed said Feb. 10.
The country’s 5.75 percent dollar bonds due in 2020 gained, pushing the yield down one basis point, or 0.01 of a percentage point, to 7.27 percent at 12:10 p.m. in Cairo, according to prices compiled by Bloomberg. The pound was little changed at 6.0365 a dollar.
--Editors: Claudia Maedler, Shanthy Nambiar
To contact the reporter on this story: Ahmed A Namatalla in Cairo at firstname.lastname@example.org;
To contact the editor responsible for this story: Claudia Maedler at email@example.com