Egypt to offer reopened bonds second time in a week

Egypt's Finance Ministry will offer 5 billion Egyptian pounds ($832.78 million) in reopened three- and five-year bonds at an auction on December 5, its second such sale in a week, the central bank said on Tuesday .

The government has been struggling to finance a growing budget deficit as local banks exhaust their liquidity and political chaos scares off foreign investors.

Yields on debt have soared to their highest in years this month. On Monday, the central bank sold 4bn pounds of the same two bonds after having reopened them last week.

An interim government that was hoping to secure a $3bn International Monetary Fund financing package to ease a widening budget deficit resigned last week.

The reopened three-year bonds, worth 2.5bn pounds, mature on October 18, 2014, and carry a 14 per cent coupon.

The five-year bonds, also worth 2.5bn pounds, mature on October 25, 2016, and carry a 14.25 per cent coupon.

The central bank is acting on behalf of the Finance Ministry. Settlement is on December 6, 2011.