Egypt sold $1 billion in eight-year dollar-denominated bonds, its first foreign financing move since the Iran war broke out, Asharq and Zawya reported.
Investor orders approached $4 billion, giving the Ministry of Finance room to cut the final yield to 7.625% from an initial guidance of around 8%, in a sign of stronger demand for Egypt’s debt despite regional pressure.
Both outlets reported that the proceeds from the bond offering would be used to finance social projects, but the Ministry of Finance had not issued a statement regarding the offering as of the time of publication.
The issuance comes as Egypt faces economic pressures linked to rising global energy prices and the war’s impact on emerging markets, particularly as the country relies on imports for a large share of its fuel and food needs.
But recent market indicators have shown a relative improvement in investor confidence toward Egypt’s economy, supported by a rise in foreign currency reserves to over $53 billion, slowing inflation, and an improvement in some economic indicators during the first quarter of this year.
The Egyptian pound has also been relatively stable after losses at the start of the war, while the main index of the Egyptian Exchange has continued to trade at high levels.
The new issuance is part of the government’s plan to rely on international debt instruments in 2026. Egypt had already raised an additional $1 billion by reopening existing bond tranches in March and April, bringing its total borrowing from foreign markets since the start of the year to $2 billion.
In parallel, an International Monetary Fund mission began the seventh review of Egypt’s economic reform program under the Extended Fund Facility arrangement signed with Egypt, Asharq reported.
The visit will last two weeks and include meetings with the Central Bank of Egypt, the Ministry of Finance, and the Cabinet ahead of an assessment of progress on implementing agreed economic reforms.
The visit is set to last two weeks and will include meetings with the Central Bank of Egypt, the Ministry of Finance, and the Cabinet, ahead of an assessment of progress in implementing agreed economic reforms.
The program allows Egypt to access additional financing estimated at $3.3 billion through the seventh and eighth reviews, provided it continues implementing the structural reforms and economic policies agreed upon with the fund.
Earlier this year, the IMF approved the disbursement of two tranches worth $2.3 billion as part of a financing program worth $8 billion, in addition to other financing tied to the Resilience and Sustainability Facility.
