Mobinil’s E£1.5bn (US$276m) bond issue closed oversubscribed following high demand from retail and institutional investors, EFG Hermes said.
The investment bank, which acted as arranger and underwriter, claims the issue represents the first bond in…
Mobinil’s E£1.5bn (US$276m) bond issue closed oversubscribed following high demand from retail and institutional investors, EFG Hermes said.
The investment bank, which acted as arranger and underwriter, claims the issue represents the first bond in Egypt to be mainly marketed to financial institutions and fully underwritten by an investment bank.
The bond was launched in two tranches – a private tranche of E£1.4bn, or 14 million bonds, targeted at institutional buyers and a public one of E£1bn (1 million bonds) targeted at retail investors.
These were oversubscribed by 1.5x and 11x respectively, EFG Hermes said, with offers for 21 million and 11 million bonds respectively.
Mobinil’s link with its indebted parent Orascom banned it from tapping the banking sector due to Egyptian restrictions on how much banks can lend to one single client.
The issue, which closed on Sunday, is a five-year repayment bond with a fixed coupon rate of 12.25%.
Mobinil, a JV of France Telecom and Orascom, owns 51% of ECMS, Egypt’s largest mobile operator.
