Egypt sold the first sovereign Islamic sukuk in its history earlier in February for $1.5 billion
Egypt’s Finance Minister Mohamed Maait said that the success of the first sovereign Sukuk issued by Egypt reflects the capital markets and investors’ confidence in the Egyptian economy, its future and ability to mitigate economic challenges.
Maait made these remarks in a speech read out by his advisor Mohamed Hegazi in the first regional conference of the AlBaraka Forum for Islamic Economy Sunday.
The volume of Sukuk transactions has exceeded two trillion dollars, based on the lowest international estimates, Maait noted in his speech. He also highlighted the steady increase in the amounts of Sukuk, which are over 30% annually.
Egypt sold the first sovereign Islamic sukuk in its history earlier in February for $1.5 billion and the subscription value for the offering amounted to about $6.1 billion, with a coverage rate of more than four times.
The sukuk was issued through The Egyptian Financial Company for Sovereign Taskeek, asset management funds, retirement trusts, banks, insurance and investment funds were the main investors that purchased the bonds.
Maait recently participated in the Story of a Homeland (Hekayet Watan) confirmed that the deficit declined with the economic reform from 12.5%to 6% during the fiscal year ending on June 30. The finance minister added that this level is lower than what Egypt has witnessed over the past 43 years.
