The sukuk will be Egypt’s entry into Islamic financing, with sukuk issuance estimated at $64.5 billion during Q1 of 2022 according to an April report by Fitch Ratings
Egypt is pushing the launch of its Islamic sovereign bonds, aka sukuk, to upcoming fiscal year FY2022/2023, according to Finance Minister Mohamed Maait who was quoted by state news agency (MENA) yesterday.
The sukuk will be key in financing the state’s budget deficit, said Maait on a separate occasion to Ahram Online.
The ministry previously planned to issue its first sukuk during the current fiscal year 2021/2022, which ends in June.
Maait explained that the value of the sukuk has yet to be determined and will be set according to the global markets’ latest conditions. The minister also added that the state is not yet ready for green sukuks.
He stressed that Egypt’s sukuk are not commercial bonds, but they have the specific purpose of financing the budget deficit as well as attracting new investors to the Egyptian market.
“Sukuk issuance needs great efforts as these kinds of bonds are unconventional way to secure finance. It needs capital, investors, capabilities and a suitable infrastructure,” Maait further noted.
Although the cabinet approved of the Sovereign Sukuk Act and signed it into law last year, the executive regulations for its issuance haven’t been released despite it being approved by the cabinet in April 2022.
The sukuk will be Egypt’s entry into Islamic financing, with sukuk issuance estimated at $64.5 billion during Q1 of 2022 according to an April report by Fitch Ratings.
