Investor orders exceed $9 billion; issuance set for October 7, 2025

First tranche: $700 million, 3.5-year sukuk maturing in 2029 at a yield of 6.375%

Second tranche: $800 million, 7-year sukuk maturing in 2032 at a yield of 7.950%

Ministry of Finance has priced a $1.5 billion dual-tranche sukuk issuance, with investor demand surpassing $9 billion. The issuance is scheduled for October 7, 2025.

 

According to the Ministry’s statement, the first tranche consists of $700 million in 3.5-year sukuk maturing in 2029 with a yield of 6.375%, while the second tranche comprises $800 million in 7-year sukuk maturing in 2032 with a yield of 7.950%. The weighted average cost of funding stands at 7.2% for an average maturity of 5.25 years—below the current yield of Egypt’s sovereign Eurobonds in the secondary market, where 5-year bonds are trading at 7.5%.

 

The statement added that the 3.5-year tranche was priced about 20 basis points tighter than comparable Egyptian bonds in the secondary market, while the 7-year tranche was priced 35 basis points below the yield on equivalent 7-year bonds.

 

The Ministry affirmed its commitment to implementing an ambitious debt management strategy focused on diversifying financing tools and broadening the investor base. This strategy aims to reduce borrowing costs, extend debt maturities, and sustainably lower external debt levels on an annual basis.