A senior source at Egypt’s Ministry of Finance told Al Manassa that the $1.5 billion international sukuk announced last week was listed on the London Stock Exchange. The issuance is backed by a pool of state-owned real estate and service assets, the nature of which the source declined to disclose.
The ministry announced last Wednesday that it had set the price for the dual-tranche international sukuk issuance after attracting more than $9 billion in investor orders. The sukuk are scheduled to be issued on Oct. 7.
Pricing is the step where offering managers determine the final yield on issued debt instruments based on the volume and quality of investor orders.
The ministry’s statement explained that the issuance comprises two tranches: the first is a 3.5-year tranche worth $700 million with a yield of 6.375%, due in 2029; the second is a seven-year tranche worth $800 million with a yield of 7.950%, due in 2032.
Separately, the source, who requested anonymity, revealed that the ministry has finalized procedures for a local sukuk offering worth 25 billion pounds (roughly $500 million).
Expected to be announced in early November, the offering will be Sharia-compliant and targeted at the local market through a usufruct leasing system that does not transfer ownership.
He added that the proceeds from the local issuance will be used to finance national projects in the fields of new and renewable energy, green hydrogen, clean transport, housing, information technology, and infrastructure.
The sukuk yields will be approximately 50 to 75 basis points lower than Treasury bond yields to attract a wider segment of investors. There are plans to evaluate the experience with a view to regular repetition, according to the source.
The local offering aims to diversify government funding sources away from reliance on bonds, reduce the cost of financing over the medium and long term, and extend the maturity of public debt. It also aims to attract new investors from within and outside the banking sector.
Analysts say Egypt’s growing access to global and local capital markets could allow it to gradually decrease its reliance on IMF support once the current program concludes in 2026. The shift comes as international interest rates trend downwards, creating a more favorable environment for emerging-market issuers.
