Egypt to offer LE 5 bln in reopened bonds

Egypt's Finance Ministry will offer LE 5 billion ($830.98 million) in reopened three- and five-year bonds at an auction on Dec. 19, the central bank said on Monday.

Yields on Egyptian government debt have soared this month to their highest in years as the government struggles to finance a growing budget deficit.

Local banks have nearly exhausted their liquidity and political turmoil has scared off foreign investors. Investors did not take up the full amount offered at the government's last three bond auctions.

The central bank will offer LE 2.5 billion of the three-year bonds, which carry a 14 percent coupon and mature on Oct. 18, 2014, and LE 2.5 billion of the five-year bonds, which carry a 14.25 percent coupon and mature on Oct. 25, 2016.

The central bank is acting on behalf of the Finance Ministry. Settlement is on Dec. 20, 2011.