Minister of Finance: We succeeded in issuing the first sovereign Islamic sukuk in Egypt's history, at a value of $1.5 billion

Fathi Al-Sayeh The cost of issuance is less than the required return on bonds in the international secondary markets by more than seventy points More than 250 investors from various global financial markets have applied for purchase A strong message of confidence from global financial markets and investors in the future of the Egyptian economy

Deputy Minister for Financial Policies:
The large turnout of investors demonstrates their support and confidence in efforts to diversify funding sources
Mohamed Hegazy, Head of the Public Debt Management Unit at the Ministry of Finance:

Establishing an international program for issuing sovereign sukuk for the next several years at a value of 5 million dollars and register it on the London Stock Exchange

Dr. Mohamed Maait, Minister of Finance, confirmed that we succeeded in offering the first issuance of sovereign Islamic sukuk in the history of Egypt, at a value of $1.5 billion, as the subscription value amounted to about $6.1 billion, which means that the subscription was covered by more than four times, explaining that The cost of the issue was less than the required return on bonds in the international secondary markets by more than seventy points, as the return price on the offering was reduced by about 72.5 basis points compared to the opening prices announced at the beginning of the offering process at the level of 11.675%, to close the issue pricing at 11%20230222
The minister added that this The issuance witnessed a remarkable turnout and more than 250 investors in various global financial markets submitted purchase requests, pointing out that this issuance attracted a new base of investors in the Gulf countries and East Asia as well as European countries and the United States of America, in addition to the quality of the type of investors witnessed by the offering represented by the manager Asset Pension Funds Sun Insurance, investment and banking leaders, who are distinguished by their long-term investment retention, which has a positive impact in reducing price fluctuations.20230222
The minister explained that our success in offering the first issuance of sovereign Islamic sukuk in the history of Egypt comes in light of turbulent global economic and political conditions, and the high cost of financing as a result of a sharp inflationary wave. In a way that sends a strong message of confidence from global financial markets, and investors in the Egyptian economy and its future, and its ability to deal flexibly with internal and external challenges.20230222
Ahmed Kajouk, Deputy Minister for Financial Policies, said: “We are pleased to join the group of countries issuing sovereign sukuk, and we appreciate the high turnout of investors for this successful issuance, which demonstrates their support and confidence in the efforts of government in diversifying funding sources.”

He added that Egypt prepared for this proposition by issuing the Sovereign Sukuk Law and its executive regulations to provide the necessary legislative umbrella for creating a new type of government securities that is compatible with the principles of Sharia. Islamic, in cooperation with the leading banks in the field of Islamic finance and sukuk issuance and the use of local and international law firms, to cover all technical, legal and marketing aspects in accordance with international practices in accordance with the principles of Islamic Sharia.20230222
Muhammad Hegazy, Head of the Public Debt Management Unit at the Ministry of Finance, explained that one of the most important provisions of the law and its executive regulations is that The assets are privately owned by the state, and the Egyptian Financial Company for Sovereign Sukuk, which is an Egyptian joint stock company wholly owned by the Ministry of Finance, supervises these assets. The necessary funding for investment and development projects included in the economic plan of the state’s general budget in a manner consistent with the state’s efforts to enhance expenditures to improve the standard of living of citizens, and it also helps in attracting a new segment of Arab and foreign investors, especially from the Gulf countries and Asia. Those who prefer financial transactions that are compatible with the principles of Islamic law, in a way that helps increase local and international foreign cash flows.20230222
He indicated that the Ministry of Finance succeeded in establishing an international program for issuing sovereign sukuk for the next several years, at a value of $5 billion, and it was registered on the London Stock Exchange on February 14, 2023, according to what is followed. In international bond issuances, being the first issuance of sovereign Islamic sukuk in Egypt.