Egypt resumes international sukuk issuance with $1bln offering amid regional headwinds
Arab Finance: Ministry of Finance has resumed its international sovereign sukuk issuance plan, launching a second $1 billion issuance despite ongoing regional challenges, as per a statement.
The Sharia-compliant sukuk carries a 7.875% annual coupon and a three-year maturity.
The issuance was carried out as a private placement for fiscal year (FY) 2024/2025.
It comes amid heightened geopolitical tensions and market uncertainty, but was made possible by a marked improvement in Egypt's economic conditions and key financial indicators.
This latest issuance follows the country's first sovereign sukuk offering in February 2023 and forms part of a broader $5 billion sukuk program.
The move aligns with the ministry's strategy to diversify financing tools, currencies, and investor bases, while extending debt maturity and lowering external debt servicing costs.
The sukuk was fully subscribed by Kuwait Finance House, one of the world's largest Islamic banks, reinforcing Egypt's financial ties with Kuwait.
The ministry emphasized that the issuance demonstrates Egypt's continued ability to secure favorable financial terms and advance its diversification agenda, even under strained global conditions.
It also reaffirmed its commitment to reducing external debt for budget entities by approximately $1 to $2 billion during the current year, with preliminary indicators supporting this objective.
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