Egypt plans to issue its first international sovereign sukuk, or Islamic bonds, in the 2019-2020 financial year, Finance Minister Mohamed Maait told Reuters on Wednesday. Maait did not give the size of the planned offering. Egypt is aiming to issue about $20 billion in foreign currency-denominated bonds by 2022.
Issuing sukuk could allow Egypt to attract a new class of investor as it implements a three-year IMF-backed economic reform programme agreed in late 2016. The country has borrowed heavily from abroad since then and faces a tough repayment schedule and a rising bill for oil imports.
Egypt’s foreign debt stood at $92.64 billion at the end of June, an increase of 17.2 percent from the previous year. Egyptian officials have previously announced their intention to issue Islamic bonds, but the plans did not materialise.
Earlier this month, Egypt launched a pan-Asian roadshow to promote its international bonds, part of a bid to bring down rising yields on its debt, the finance ministry said. The non-deal roadshow started in Seoul, aiming to open up new bond markets for Egypt, the statement said.
Wednesday’s announcement on the sukuk came as Minister of Investment and International Cooperation Sahar Nasr launched a European promotional tour of investment opportunities in Egypt, visiting locations such as Luxembourg and Brussels.
The tour aims to discuss increasing cooperation between Egypt, the European Union and the European Investment Bank, as well as further investing in strategic relations between Egypt and Europe.
Source Arab News