Global investors snap up $1.5B sukuk offering

Egypt’s Ministry of Finance priced a $1.5 billion dual-tranche international sukuk on Wednesday, drawing more than $9 billion in investor orders. This move signals a strong global appetite for the country’s debt, even amid lingering economic pressures.

The issuance, set to be finalized on Oct. 7, comprises a $700 million tranche maturing in 2029 with a 3.5-year tenor at a yield of 6.375%, and an $800 million tranche maturing in 2032 with a 7-year tenor at a yield of 7.950%.

According to the ministry, the weighted average cost of financing is 7.2% for an average maturity of 5.25 years—lower than the 7.5% yield currently seen on Egypt’s five-year Eurobonds in secondary markets.

The shorter-dated tranche was priced 20 basis points below comparable Egyptian bonds, while the longer-dated tranche came in 35 basis points tighter than secondary market yields for similar maturities.

This marks Egypt’s third major foray into the global sukuk market in under two years. The country previously raised $1 billion in June and $2 billion in conventional dollar bonds in January 2025.

Egypt’s inaugural international sukuk in 2023, priced at nearly 11%, reflected a different market environment marked by tight global liquidity and heightened domestic risk.

Analysts say Cairo is now positioning itself to reduce reliance on IMF loans after the current program ends in 2026. Tapping global capital markets at a time of easing global interest rates is seen as a strategic pivot to sustain financing and manage debt.

With appetite surging and yields falling, Egypt is signaling that it remains open for business, and increasingly on its own terms.