Egypt sells its first Islamic sukuk for $1.5 billion: Finance minister

Doaa A.Moneim , Wednesday 22 Feb 2023

Egypt sold on Tuesday its first US-denominated sovereign bonds, Islamic sukuk, with a total value of $1.5 billion, Minister of Finance Mohamed Maait said on Wednesday.

Finance Minister Mohamed Mait
File Photo: Finance Minister Mohamed Mait. Al-Ahram


Subscription on these bonds, valued at $6.1 billion, covered fourfold its face value, according to Maait.

The yield of these bonds was decreased to 11 percent, down from 11.67 percent due to high demand, with 250 investors have purchased the bonds, said the minister.

Maait added that the bonds attracted a fresh base of investors from the markets of the GCC, Europe, and the US.

Asset management funds, retirement trusts, banks, insurance and investment funds were the main investors that purchased the bonds, according to Maait.

“The success of this issuance comes amid turbulent global economic and political conditions and the higher costs of financing costs as a result of the global inflationary wave,” said Maait.

He added that this success reflects the confidence of global capital markets and investors in the Egyptian economy, its future, and its ability to deal flexibly with the internal and external shocks.

Finance minister deputy for financial policies Ahmed Kojok stated that the issuance of these sukuk is in line with Egypt’s government seeking to diversify its financing resources.

Kojok explained that the proceeds of these bonds will be directed to the development and investment projects that are set in the state’s budget.

He added that the ministry has created an international programme for sovereign bond issuance for a total value of $5 billion, adding that the programme was registered in the London Stock Exchange on 14 February.

Search Keywords:
Short link: