The Egyptian government has successfully issued its second sovereign sukuk, compliant with Islamic Sharia principles, with a total value of $1 billion.

The sukuk was offered as a private placement during the 2024–2025 fiscal year, according to a statement released by the Ministry of Finance.

The issuance carries an annual coupon rate of 7.875% with a maturity of three years, and aligns with Egypt’s strategy to diversify its sources of financing across markets, instruments, and investor bases.

The Ministry clarified that Kuwait Finance House (KFH) fully subscribed to the private placement, reflecting strong investor confidence.

This second sukuk issuance underscores the Ministry of Finance’s ability to achieve its financial targets despite ongoing global economic and geopolitical challenges.

It also highlights the government’s success in broadening financing tools and sources across different currencies, markets, and investor segments, while securing favorable financing terms.

The issuance follows Egypt’s first sovereign sukuk offering in February 2023 under the international sovereign sukuk program, which has an overall size of $5 billion.

The sukuk also supports the Ministry’s broader objectives, including diversifying debt instruments, expanding into new markets, reaching new investor segments, extending the average debt maturity, and reducing the cost of external debt—ultimately lowering the total cost of financing.

The Ministry reaffirmed its commitment to reducing external debt for the state’s general budget entities by $1–2 billion during the current year, noting that preliminary indicators suggest strong progress toward achieving these goals.