Egypt Issues $1B Sovereign Sukuk to Kuwait Finance House

Egypt has successfully issued its second sovereign sukuk, a Sharia-compliant Islamic bond valued at $1 billion, with a three-year maturity and an annual coupon rate of 7.875 percent. This private placement was fully subscribed by Kuwait Finance House, reflecting strong investor confidence and aligning with Egypt's strategy to diversify its financing sources across markets, instruments, and investor groups. The issuance follows the country's first sovereign sukuk launched in February 2023 and supports the Ministry of Finance's goals to broaden funding sources, extend debt maturities, and reduce the cost of external debt. Egypt aims to raise up to $2 billion in sukuk by 2025 as part of a broader fiscal strategy to close funding gaps and enhance debt sustainability. This initiative also strengthens Egypt's position in Islamic finance and complements ongoing negotiations with the IMF regarding the Extended Fund Facility loan programme. The government remains committed to reducing external debt by $1–2 billion for the state’s general budget entities this year, with preliminary indicators showing progress toward these objectives.