The issuance, backed by a partial credit guarantee from the African Development Bank Group, is split into two tranches, according to a statement released Monday.
The first tranche totals 56 billion yen and carries a five-year maturity through 2031, while the second tranche is worth 24 billion yen with a 10-year maturity through 2036.
Samurai bonds are yen-denominated debt sold in Japan by foreign issuers. The proceeds from sustainability Samurai bonds are earmarked for environmental and social projects.
Egypt has been preparing for another return to Japan’s capital markets after raising a similar 80 billion yen in October 2023. The country first entered the Samurai market in 2022 and has since completed two issuances, each worth about $500 million.
Egyptian Minister of Finance Ahmed Kouchouk said the move forms part of Egypt’s strategy to diversify financing tools, maintain the country’s access to international capital markets, acquire private investments and finance sustainable development priorities, through the partnership with the AfDB.
The bond will also help Egypt’s economy remain resilient amid geopolitical conflict and market volatility, lower borrowing costs, expand the investor base, manage debt and reduce the debt-to-GDP ratio.
Bond uses
Proceeds from the issuance will be used to finance priority investments in healthcare, education, renewable energy, energy efficiency, climate adaptation, water and wastewater management, digital infrastructure and inclusive socioeconomic development.
The bond sale is part of Egypt's broader strategy to accelerate the transition to a greener economy, with the government targeting green projects to account for 75 percent of total public investment by 2030.
Egypt’s total investments for the upcoming FY 2026/2027 are projected to reach EGP 3.7 trillion, with the investment-to-GDP ratio to reach 17 percent.
The financing falls under Egypt's Sovereign Sustainable Financing Framework, which channels funding toward environmental and social projects in line with the country's Vision 2030 strategy.
AfDB’s Director of the Financial Sector Development Department, Ahmed Attout, said the bond will also support Egypt’s efforts to “diversify the currency composition of its external debt while mobilizing resources for sustainable and inclusive growth.”
Egypt’s total external debt rose by around 5.5 percent t $161.2 billion at the end of fiscal year 2024/2025 (which ended in June 2025), while debt servicing costs have consumed nearly 76 percent of total revenues during the first 10 months of fiscal year 2025/2026.
The country’s government aims to reduce external debt by $1–2 billion annually and lower debt servicing costs to 35 percent of total expenditure over the medium term.
This is alongside a plan to reduce the debt of budget sector entities to 78 percent of the GDP by June 2027.
As of April 2026, Egypt's external debt has already declined to approximately $77.5 billion from $78.5 billion.
Credit rating
Japan Credit Rating Agency (JCR) assigned a credit rating of AA+ for the five-year bond. While the ten-year bond received a credit rating of AA, which will be revised to AA+ six months after its issuance.
Both bonds are expected to be upgraded to AAA once they enter the African Development Bank's interest payment guarantee period.
The ratings reflect the AfDB's credit profile as guarantor. Under the guarantee structure, the bank will not cover interest accrued before the guarantee period begins or any overdue interest. It will fully guarantee principal and coupon payments from the fourth year of the 10-year bond and from 18 months after issuance for the five-year bond.
Egypt was the first African country to gain access to the Chinese Panda Bond market, issuing the Middle East and North Africa’s first sustainable Panda bonds at 3.5 billion Japanese Yen ($500 million) with a yield of 3.5 percent over three years, in 2023.
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