The Finance Ministry is looking to issue its newly debuted Citizen Bonds on a monthly basis, Finance Minister Debt Advisor Mae Adel tells EnterpriseAM. Each new issuance will feature a variable interest rate determined by market conditions at the time of offering. The move follows the inaugural issuance — which remains open to retail investors until 8 March — attracting EGP 350 mn in just the first two days, an Egypt Post official tells us.

The inaugural 18-month tenor was selected because there is currently a gap in the market at that maturity, making it attractive to a broad segment of retail investors, Adel says. “If demand emerges for longer tenors — particularly given that the new bonds are [backed] by the Finance Ministry — maturities will be diversified.”

Unlike the state’s sovereign sukuk, the Citizen Bond has no fixed target volume. Subscription values will instead be compiled weekly through Egypt Post, with the final issuance size determined based on total retail subscriptions.

These retail bonds are also “entirely tax-exempt,” and yields will be paid out without any deductions, we were told. The goal, Adel says, is to “spread the culture of investment among small savers and attract diverse segments across the governorates.”

Why it matters: The Citizen Bond is a tactical piece of the government’s broader public debt strategy, which targets bringing the debt-to-GDP ratio down to 78.5% and capping interest payments at 35% of total public revenues in the upcoming fiscal year. By introducing the Citizen Bond alongside local sukuk, the strategy hinges on diversifying debt instruments and attracting lower-cost funding to help close the financing gap.

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