Egypt collects $1.5 billion from international bonds

Finance Minister Muhammad Ma'it said "Egypt has an international program to issue sovereign bonds for the next several years worth 5 billion dollars."

He added, "$1.5 billion was offered, and the remaining $3.5 billion may be offered over an average of three years."

Egypt sovereign bonds

Yesterday, Egypt sold sovereign bonds, the first in its history, worth 1.5 billion dollars for 3 years, where the international offering attracted orders worth 6.1 billion dollars, to exceed the coverage ratio 4 times. And the yield fell after that by more than 0.6 percentage points from 11.625% to 11%.

The Minister of Finance explained that the large coverage of the issue reflects "the confidence (in Egypt) by international markets and investors".

He continued, despite the reduction of the yield from the reference price by 0.6%, until it reached below the yield on the Egyptian bonds in the international markets, the investors were eager to get a share of the new sukuk.

Sovereign Islamic sukuk

The success of the first issue of sovereign Islamic sukuk in Egypt's history comes in light of turbulent global economic and political conditions, and the increase in the cost of financing as a result of a sharp inflationary wave, in a way that sends a strong message of confidence from the global capital markets, and investors in the Egyptian economy and its future, and its ability to deal flexibly with the internal and external challenges.

The head of the Public Debt Management Unit at the Egyptian Ministry of Finance, Mohamed Hejazi, said that the Ministry of Finance succeeded in establishing an international program for issuing sovereign sukuk for the next several years worth 5 billion dollars, and it was registered on the London Stock Exchange on February 14, 2023.