Egypt Issues $1 Billion Sovereign Sukuk to Strengthen Financing Strategy
The Egyptian government has successfully launched its second sovereign sukuk, compliant with Islamic Sharia principles, with a total value of $1 billion.
This sukuk was offered as a private placement for the 2024–2025 fiscal year, as stated by the Ministry of Finance.
The issuance features an annual coupon rate of 7.875 percent and a maturity of three years. It aligns with Egypt's strategy to diversify its financing sources across various markets, instruments, and investor groups.
The Ministry further explained that Kuwait Finance House (KFH) fully subscribed to this private placement, indicating strong investor confidence.
This second sukuk issuance underscores the Ministry of Finance's capability to meet its financial targets despite the ongoing challenges in the global economy and geopolitical landscape.
It also highlights the government's success in expanding its financing tools and sources, tapping into different currencies, markets, and investor bases while securing favorable terms.
This issuance follows Egypt's first sovereign sukuk, launched in February 2023, under the international sovereign sukuk program, which has a total value of $5 billion.
Moreover, the sukuk supports the Ministry's broader goals, such as diversifying debt instruments, entering new markets, reaching new investor segments, extending the debt maturity profile, and lowering the cost of external debt—ultimately reducing the overall financing cost.
The Ministry also reiterated its commitment to reducing the external debt for the state's general budget entities by $1–2 billion during this year, with preliminary indicators showing strong progress in achieving these objectives.
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