Egyptian eurobond yields continue to drop

Egyptian eurobond yields continued to decline on overweight investor demand, according to the most recent Africa DCM Market Update by BNP Paribas (pdf). Our friends at the bank tell us they are seeing strong buying activity from US and UK real-money funds in the secondary market. Yields on Egyptian eurobonds declined to their lowest level since issuance with five-year bonds trading at 4.98%,10-year at 5.99%, and 30-year ones at 7.43%. Also, the USD cost of funding declined by 125-150 bps in 2017 y-t-d driven by improved credit perception and favourable Emerging Markets sentiment, the report notes.