Merrill Lynch is the favourite to secure the mandate to manage Egypt's debut Eurobond after reaching the final round of bidding for the deal, according to rival bankers.

Merrill is among seven banks to have been shortlisted by the Egyptian government to manage the $500m (€567m) Eurobond it hopes to issue early next year. Merrill is many market officials' favourite to win the deal having worked closely with the Egyptians on a possible Eurobond debut since 1997.