Egypt plans to issue USD 1-1.5 bn worth of eurobonds or green bonds in international markets as soon as next month, followed by an issuance of sovereign sukuk, to take advantage of rising investor interest in Egyptian debt, a senior government official told EnterpriseAM. The Madbouly government is currently in discussions with international offering advisors to identify the best options for debt issuances in the coming period, the source added.

Remember: Finance Minister Ahmed Kouchouk last year said that Egypt is set to issue USD 3bn in eurobonds and other debt instruments in FY 2024-25.

The government last issued eurobonds in late 2021, selling USD 6.75 bn in bonds across two issuances in February and September. Since then, high global interest rates and domestic currency market instability have discouraged the issuance of USD-denominated debt on international markets. Our maiden sovereign sukuk issuance in international markets came in 2023, when the Finance Ministry raised USD 1.5 bn.

More clarity soon? We are waiting on the Finance Ministry to release its new public debt policy in March, a government source told us earlier this month. The policy will provide investors with clarity on international offering plans and strategies for returning to international debt market indices to attract new investors.

What to expect: The upcoming debt policy is focused on extending debt maturities by diversifying debt instruments, while targeting overall debt reduction. It includes maintaining external debt for budget entities at USD 79.1 bn by the end of September, marking a USD 3 bn reduction, according to our source.

Tags: