The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Debt capital markets: Russia beaten by Egypt in the secondary market

Egypt’s bonds helped by rarity factor; Both tranches hold ground against Russia

Bigger does not necessarily mean better. Just look at the relative performances of Russia’s and Egypt’s sovereign bonds. Both were launched on April 21. While the Russia deal came with tremendous fanfare – the sovereign’s first issuance in 12 years – the Egypt bond – its first in nine – almost slipped by unnoticed.

Russia raised $5.5 billion through five-year and 10-year tranches. The five-year was launched at a spread of 125 basis points over US treasuries, while the 10-year tranche came out at 135bp over. On May 21, they were trading at 252bp over and 272bp over respectively, an indication that the deal was priced too tightly.

Egypt, by contrast, has weathered the volatility much better. It raised $1.5 billion through 10-year and 30-year tranches. The 10-year had widened by just 6bp through May 21, going from 260bp over to 266bp over. The 30-year had widened from 299bp over to 333bp over.

Andrew Dell, head of global financing, central and eastern Europe, Middle East and Africa at HSBC

"Egypt chose a wise moment to tap the market. The pricing was helped by the rarity of Egyptian sovereign issuance in the dollar market"

Andrew Dell, HSBC

"Egypt chose a wise moment to tap the market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree