Egypt is set to secure a partial credit guarantee from the African Development Bank Group for its upcoming $500 million Samurai bond issuance, as Cairo ramps up efforts to diversify its debt portfolio and wean itself off IMF dependency.
The yen-denominated bonds, scheduled for private placement in 2026, will finance a suite of green and socially driven projects under the state’s sovereign sustainable finance framework.
In a statement released Thursday, AfDB confirmed that the proceeds will support sectors including renewable energy, clean transportation, water infrastructure, climate adaptation, affordable housing, and essential public health services.
This is AfDB’s second strategic intervention in Egypt’s debt markets, following its backing of a successful Panda bond issuance in Chinese yuan in 2023.
The Ministry of Finance first entered the Samurai bond market in March 2022 with a debut issuance yielding 0.8%, followed by a second tranche in November 2023 valued at approximately $500 million with a 1.5% yield over five years.
Samurai bonds are long-term debt instruments denominated in Japanese yen, issued by foreign governments or corporations targeting Japanese institutional investors.
Meanwhile, Egypt is also preparing to float international bonds denominated in US dollars, valued between $1.5 billion and $2 billion, in the first half of 2026, as part of its broader drive to widen access to global capital.
Analysts interpret Cairo’s renewed focus on market-based financing as a calculated move to phase out reliance on IMF loans, which have historically come with politically fraught conditions. The current IMF program, launched in 2022, is set to expire in 2026.
With global interest rates trending downward, Egypt is seeking to capitalize on more favorable borrowing costs and tap a wider investor base. Financial experts have previously suggested to Al Manassa that this could give Cairo greater fiscal maneuverability—but caution remains over transparency, debt sustainability, and the real-world social impacts of Egypt’s reform agenda.
