The government has raised the limit of Egypt’s eurobond program to USD 30 bn from USD 20 bn, according to the prospectus (pdf) published yesterday on the Luxembourg Stock Exchange ahead of the Finance Ministry’s upcoming issuance. The prospectus listed high inflation, EGP-to-USD depreciation, a below-investment grade credit rating, and internal instability as the key risk factors to repayment, but didn’t state an explicit reason for the increase. The ministry is planning to sell up to EUR 1.5 bn-worth of eurobonds in mid-April, and reportedly began receiving bids yesterday to test the market’s appetite for the issuance, government sources said, according to a local press report. Egypt’s recent eurobond issuance in February, which saw the ministry sell USD 4 bn in USD-denominated eurobonds, was 5x oversubscribed, attracting USD 21.5 bn in bids from 250 investors.

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