{"id":655992,"date":"2024-11-27T00:00:00","date_gmt":"2024-11-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/27\/egypt-to-issue-its-first-local-currency-sukuk-in-fy-2025-26\/"},"modified":"2024-11-27T00:00:00","modified_gmt":"2024-11-27T00:00:00","slug":"egypt-to-issue-its-first-local-currency-sukuk-in-fy-2025-26","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/27\/egypt-to-issue-its-first-local-currency-sukuk-in-fy-2025-26\/","title":{"rendered":"Egypt to issue its first local currency sukuk in FY 2025-26"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>An EGP-denominated sovereign sukuk issuance is in the works: <\/strong>The government is planning to issue its first EGP-denominated sovereign sukuk in the domestic market in the next fiscal year, a senior government source told EnterpriseAM. The move aims to finance public investments outside of the general budget, and comes as government entities begin to prepare their FY 2025-26 budgets, the source noted.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember: <\/strong>Our <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6152c0e0-66bd-48d5-b73f-1de6cac73e6c\/egypt%25e2%2580%2599s-debut-usd-1.5-bn-sovereign%253cmark%253e-sukuk%253c%2Fmark%253e-issuance-wraps-4x-oversubscribed\" style=\"\" rel=\"noopener\">maiden sovereign sukuk issuance<\/a> in international markets in 2023 raised USD 1.5 bn and was more than 4x oversubscribed, attracting an order book of USD 6.1 bn. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The details: <\/strong>The sukuk will be issued in a series of tranches for government entities under the sovereign sukuk program, with the government currently exploring various sukuk types, including ijara, murabaha, and istisnaa, among others. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The rationale: <\/strong>The new issuance comes as the government seeks lower domestic and international borrowing costs alongside financing for development projects at a time when the state has <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4286f10b-5618-426b-87de-d53d22d9591a\" style=\"\" rel=\"noopener\">capped public investment at EGP 1 tn<\/a> for the current fiscal year. It also comes as the government has been exploring <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2231fb64-06b2-46fd-806a-eb46bbaead17\/egypt-is-looking-to-tap-usd-3-bn-worth-of-external-debt-by-june,-kouchouk-reportedly-tells-foreign-investors\" style=\"\" rel=\"noopener\">potential routes<\/a> for re-entering international debt markets, with previously discussed options, including the issuance of USD-denominated bonds, sukuk to meet rising global demand, or bonds backed by guarantees from institutions like the IMF to lower borrowing costs.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We had an inkling that a sukuk issuance was coming: <\/strong>Finance Minister Ahmed Kouchouk last month said that the government was considering <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ce82e62f-3bbc-44a4-9b99-003d6f758bb2\/egypt%e2%80%99s-airport-privatization-plans-are-already-attracting-suitors\" style=\"\" rel=\"noopener\">EGP 5-10 bn<\/a> worth of green bond and sukuk issuances during the last two quarters of FY 2024-25.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Could a Eurobond issuance be next?<\/strong> Finance Minister Ahmed Kouchouk told foreign investors in London earlier this year that Egypt was set to issue <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2231fb64-06b2-46fd-806a-eb46bbaead17\" style=\"\" rel=\"noopener\">USD 3 bn<\/a> in Eurobonds and other debt instruments in FY 2024-25.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The move comes as the state seeks to diversify financing tools, cut borrowing costs, and fund development projects amid its EGP 1 tn spending cap<\/p>\n","protected":false},"author":1,"featured_media":655993,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7274],"tags":[7106,88,104,72,280],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-655992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt-watch","tag-debt","tag-debt-watch","tag-economy","tag-enterpriseam","tag-sukuk","wpautop","entry"],"acf":{"mongo_id":"ccb5878e-671d-4785-af66-d6daacf66e15","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/10\/451.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt to issue its first local currency sukuk in FY 2025-26","related_issue":[655987],"teaser":"The move comes as the state seeks to diversify financing tools, cut borrowing costs, and fund development projects amid its EGP 1 tn spending cap","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/11\/.4c9d98aa-7468-4302-b027-3335e40cdc0d.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The timing of the issuance is still undetermined and the ministry will pull the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/12\/155.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":661170,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/02\/24\/egypt-to-complete-egp-2-3-bn-sukuk-issuance-within-a-month\/","url_meta":{"origin":655992,"position":1},"title":"Egypt to complete EGP 2-3 bn sukuk issuance within a month","author":"enterpriseam admin","date":"24 February 2025","format":false,"excerpt":"The issuance will be Egypt\u2019s second-ever sukuk issuance and the first to be EGP-denominated","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/1\/1760.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":568064,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/16\/what-were-borrowing-in-1h2021\/","url_meta":{"origin":655992,"position":2},"title":"What we\u2019re borrowing in 1H2021","author":"enterpriseam admin","date":"16 December 2020","format":false,"excerpt":"The Finance Ministry reportedly plans to sell USD 7 bn-worth of EUR- and USD-denominated eurobonds in 1H2021, Asharq Bloomberg suggests. The story, which cites unnamed sources, suggests the ministry has already approached international investment banks to advise on the potential sales. Finance Minister Mohamed Maait had told Bloomberg last week\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":581756,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/23\/egypts-debut-usd-1-5-bn-sovereign-sukuk-issuance-wraps-4x-oversubscribed\/","url_meta":{"origin":655992,"position":3},"title":"Egypt\u2019s debut USD 1.5 bn sovereign sukuk issuance wraps 4x oversubscribed","author":"enterpriseam admin","date":"23 February 2023","format":false,"excerpt":"Egypt closes USD 1.5 bn sukuk issuance: The Finance Ministry successfully closed its maiden sukuk issuance yesterday morning, it said in a statement. The USD 1.5 bn issuance was c.4x oversubscribed, attracting an order book of USD 6.1 bn, the ministry said. This narrowed the final yield to 10.875% from\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/12\/EGP-USD-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":542629,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/09\/get-ready-for-sovereign-sukuk-act-exec-regs\/","url_meta":{"origin":655992,"position":4},"title":"Get ready for Sovereign Sukuk Act exec regs","author":"enterpriseam admin","date":"9 January 2022","format":false,"excerpt":"Sovereign Sukuk Act exec regs about to drop? The government is looking to finalize the executive regulations of the Sovereign Sukuk Act by the end of the month, setting the stage for the country\u2019s c.USD 2 bn maiden issuance before the end of the fiscal year in June, Mohamed Hegazy,\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/91.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":665075,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/12\/finmin-could-complete-a-sovereign-sukuk-issuance-as-early-as-this-month\/","url_meta":{"origin":655992,"position":5},"title":"FinMin could complete a sovereign sukuk issuance as early as this month","author":"enterpriseam admin","date":"12 May 2025","format":false,"excerpt":"The government has already held promotional meetings with investors","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/2\/2510.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/655992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=655992"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/655992\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/655987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/655993"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=655992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=655992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=655992"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=655992"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=655992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}