{"id":671253,"date":"2025-09-03T00:00:00","date_gmt":"2025-09-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/09\/03\/govt-to-take-egp-25-bn-worth-of-local-sukuk-to-market-in-fy-25-26\/"},"modified":"2025-09-03T00:00:00","modified_gmt":"2025-09-03T00:00:00","slug":"govt-to-take-egp-25-bn-worth-of-local-sukuk-to-market-in-fy-25-26","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/09\/03\/govt-to-take-egp-25-bn-worth-of-local-sukuk-to-market-in-fy-25-26\/","title":{"rendered":"Gov\u2019t to take EGP 25 bn worth of local sukuk to market in FY 25-26"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The Madbouly government plans to take EGP 25 bn worth of local sukuk to <\/strong><strong>market this fiscal year<\/strong>, with the first issuance to take place before the end of 2025, a senior government official told EnterpriseAM. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">(<strong>Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>As things stand: <\/strong>The Finance Ministry has finalized the sukuk program\u2019s schedule, the source said, adding that the issuances will come in the form of short- and medium-term tranches.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Tranche one: <\/strong>The first issuance, which would mark Egypt\u2019s first-ever local sovereign sukuk issuance, might be small in size to assess investors\u2019 appetite, the source said. The Finance Ministry is currently meeting with banks eligible for subscription to finetune the issuance plan. The issuance is almost ready to go, with around 90% of the required steps already completed, our source added. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REFRESHER- <\/strong>We were previously <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/fce2b621-50e4-4a1f-b94c-11b92562becf\/gov%25e2%2580%2599t-mulls-a-fractional-bond-issuance-to-stimulate-debt-market\" style=\"\" rel=\"noopener\">told<\/a> that the first two tranches of the program will be valued at EGP 3-4 bn, and that they will be offered before the end of this year.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What are we waiting for?<\/strong> A pricing framework is currently being developed for the local sukuk, the source noted. At the same time, officials are identifying the assets that will be used as collateral for these sukuk, the source said, adding that the ownership of these assets will not be transferred.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>To back the sukuk: <\/strong>A new Ras Shukeir project involving one of the Gulf\u2019s sovereign wealth funds \u2014 the first in a series linked to the 174 sq km Ras Shukeir zone on the Red Sea \u2014 will <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bbf39fe3-7273-4890-a73d-1616408be585\/gcc-sovereign-wealth-fund-to-announce-big-ticket-project-in%253cmark%253e-ras%253c%2Fmark%253e-shukeir-in-the-coming-days\" style=\"\" rel=\"noopener\">back the local sukuk issued by the Finance Ministry<\/a>, with proceeds earmarked for reducing public debt.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>To sweeten the pot: <\/strong>The government plans to introduce incentives and mechanisms to create an open market and attract Islamic banks and investors from the Middle East and Asia to the issuance, the source noted.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The primary objective? <\/strong>The government wants to diversify its debt instruments and attract more investors to the local debt market with lower interest payments and borrowing costs, our source said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER-<\/strong> The government\u2019s financing gap for the current fiscal year is <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/10afb773-3b4d-44f9-8006-f938479c8531\/egypt%25e2%2580%2599s-financing-needs-set-to-rise-over-25%2525-next-fiscal-year-to-egp-3.6-tn\" style=\"\" rel=\"noopener\">expected<\/a> to reach EGP 3.6 tn, marking a 25% y-o-y increase. The government plans to cover the budget deficit through issuing new local debt instruments worth EGP 2.2 tn in treasury bills and some EGP 928.9 bn in treasury bonds as part of the government's plan to raise spending on social welfare and fill the budget shortfall.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We\u2019re awaiting the new debt strategy: <\/strong>The Finance Ministry is working on its new public debt strategy for 2025-2030, which government sources have previously <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/93de81f7-e533-4d53-90f3-182cbb45ccc2\/new-debt-strategy-expected-to-see-light-in-1q-fy-2025-2026\" style=\"\" rel=\"noopener\">told us<\/a> could be released during 1Q FY 2025-2026. The strategy aims to diversify the country's public debt instruments and introduce new ones, seeking to secure funding with varied and more competitive interest rates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first issuance is expected to close before the end of 2025<\/p>\n","protected":false},"author":1,"featured_media":671254,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","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":[7106,88,72,280],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-671253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt-watch","tag-debt","tag-debt-watch","tag-enterpriseam","tag-sukuk","wpautop","entry"],"acf":{"mongo_id":"6f22c7ac-a2c0-4be7-a6ee-3724ad8d1e76","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/7\/1624.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt to take EGP 25 bn worth of local sukuk to market in FY 25-26","related_issue":[671248],"teaser":"The first issuance is expected to close before the end of 2025","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/9\/.93e67655-e0eb-4f0c-a2b2-0ae1f5c80ca7.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 issuance, backed by a receivables portfolio worth EGP 1.5 bn,\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\/2020\/11\/310.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":674722,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/11\/03\/four-gulf-banks-eye-our-egp-3-bn-local-sukuk-issuance\/","url_meta":{"origin":671253,"position":1},"title":"Four Gulf banks eye our EGP 3 bn local sukuk issuance","author":"enterpriseam admin","date":"3 November 2025","format":false,"excerpt":"Strong appetite prompted the Finance Ministry to quadruple its wider sukuk program for the fiscal year to EGP 200 bn","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\/9\/728.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575636,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/21\/egypts-sarwa-amer-to-close-sukuk-sales-before-end-of-2020\/","url_meta":{"origin":671253,"position":2},"title":"Egypt\u2019s Sarwa, Amer to close sukuk sales before end of 2020","author":"enterpriseam admin","date":"21 October 2020","format":false,"excerpt":"DEBT WATCH- Sarwa, Amer to close sukuk sales before 2020 ends: Sukuk issuances by EGX-listed Sarwa Capital and Amer Group are set to go to market before the year is out, the local pressreports, citing sources it says have knowledge of the transactions. Sarwa, a structured- and consumer-finance player, is\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":675341,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/11\/12\/local-sukuk-issuance-take-two\/","url_meta":{"origin":671253,"position":3},"title":"Local sukuk issuance, take two","author":"enterpriseam admin","date":"12 November 2025","format":false,"excerpt":"The second tranche is a three-year ijara issuance with a semi-annual return","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":[]},{"id":573005,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/16\/sarwa-submits-prospectus-for-egypts-second-corporate-sukuk-issuance\/","url_meta":{"origin":671253,"position":4},"title":"Sarwa submits prospectus for Egypt\u2019s second corporate sukuk issuance","author":"enterpriseam admin","date":"16 July 2020","format":false,"excerpt":"DEBT WATCH- Sarwa submits prospectus for Egypt\u2019s second corporate sukuk issuance: Consumer- and structured- finance player Sarwa Capital is preparing a single-tranche EGP 2.5 bn corporate sukuk issuance, Ayman El Sawy, managing director of Sarwa Promotion & Underwriting, told Hapi Journal. Sarwa has already submitted the prospectus for the issuance\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/126.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":559724,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/02\/sarwas-advisory-pipeline-includes-egp-10-bn-worth-of-sukuk\/","url_meta":{"origin":671253,"position":5},"title":"Sarwa\u2019s advisory pipeline includes EGP 10 bn worth of sukuk","author":"enterpriseam admin","date":"2 February 2021","format":false,"excerpt":"Sarwa Capital is quarterbacking at least three sukuk issuances this year with a combined value of more than EGP 10 bn, the local press reports, citing sources in the know. 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