Egypt's sovereign debt insurance costs have fallen since the Egyptian government announced recent developments in its state issuance program, trading near its lowest levels in over 4 months.
Credit default swaps (CDS) contracts for 5-year debt were trading at 12.31% on Friday last, versus 15.8% at the end of trading on 10 July prior to the announcement of selling stakes worth $1.9 billion in several companies.
Egypt had announced closing deals worth $1.9 billion, nearing the sale of stakes in other companies including secondary share offerings worth $1 billion during the remainder of 2023.
Egypt's sovereign debt insurance costs peaked this year, hitting 1945 basis points on 18 May. While falling sharply since then, they remain 42% higher than levels at the start of the year of 867 basis points.
In the secondary markets, yields on Egypt's 2025 international bonds denominated in U.S. dollars and bearing a coupon of 5.875%, fell in Luxembourg Stock Exchange trading to 14.33% versus 18.47% on 10 July, while the yield on 2047 bonds denominated in dollars fell to 14.62% versus 16.651%.
