Dechert Advises Egypt on US$3 Billion Offering

Dechert acted as English and U.S. counsel to the Arab Republic of Egypt, acting through the Ministry of Finance, in connection with the update of the Republic’s US$40 billion Global Medium Term Note Programme and the issuance of US$3 billion of notes under this programme. The issuance was made up of (i) US$1,125,000,000 5.800% Notes due 2027; (ii) US$1,125,000,000 7.300% Notes due 2033; and (iii) US$750,000,000 8.750% Notes due 2051.

The issuance was three times oversubscribed, with total bids of US$9 billion by more than 300 investors from the U.S., Europe, Asia, the Middle East and Africa. It follows a trend of similar issuances from emerging market governments capitalising on advantageous borrowing costs, ahead of the U.S. Federal Reserve’s tapering of its pandemic stimulus.

This represents the latest in a series of significant matters in the MENA region, including the following award-winning deals:

• The first-ever green bond for a Middle East and North Africa region sovereign, issued by the Arab Republic of Egypt.
• The first sustainability bond issued from Africa, by Banque Ouest Africaine de Développement (BOAD).
• The Arab Republic of Egypt’s US$2 billion triple-tranche bond issuance.

The London team advising Egypt on the offering was led by partners Patrick Lyons and Jennifer Rees.

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