Monday, 25 May 2026
Egypt Issues $1 billion sovereign sukuk in second international offering despite regional challenges
Egypt has successfully returned to international markets with the issuance of its second sovereign sukuk, valued at $1 billion, as part of its ongoing plan to diversify funding sources and attract new investors—even amid regional and economic challenges.
Announced by the Ministry of Finance, the three-year Sharia-compliant sukuk carries an annual coupon rate of 7.875%. This latest issuance reflects Egypt’s strengthened economic outlook and improved financial indicators, despite increasing global uncertainty due to regional tensions.
"The successful sale demonstrates the Ministry of Finance’s ability to achieve financial targets and secure favorable terms, while diversifying financing tools and extending debt maturity," the statement read. The offering is a private placement for the fiscal year 2024/2025, following Egypt’s inaugural sovereign sukuk in February 2023. The program now totals $5 billion.
Kuwait Finance House, one of the world’s largest Islamic banks, was the sole investor in this private placement, underlining the strengthening economic partnership between Egypt and Kuwait.
The Ministry also reiterated its commitment to reducing Egypt’s external government debt by $1 to $2 billion this year, with early indicators suggesting these targets are within reach.