CAIRO - 28 November 2024: Minister of Finance Ahmed Kouchouk announced that Egypt is set to issue a sovereign sukuk denominated in its local currency, the Egyptian Pound. The issuance is scheduled for the first quarter of 2025.
This development underscores Egypt's commitment to diversifying its financing sources and tapping into innovative financial instruments to address its budget deficit. While the nation has previously issued sovereign sukuk in US dollars, this upcoming issuance signifies a significant stride towards local currency financing.
Egypt's foray into the sovereign sukuk market began in February 2023 with a successful $1.5 billion three-year issuance. The country further solidified its position as a regional leader in sustainable finance by issuing the region's first green sovereign bond in September 2020, raising $750 million with a remarkable oversubscription rate of nearly five times.
Egypt’s overall budget deficit for the 2023-2024 fiscal year contracted to 3.6% of GDP, aided by the successful Ras El Hekma deal. However, the government anticipates a higher deficit of 6% for the current fiscal year.
Earlier today, Prime Minister, Mostafa Madbouly, stressed that there is no restriction on the movement of the dollar and Egypt is committed to a flexible exchange rate.
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