Egypt plans to issue international sovereign sukuk in 2019-2020

CAIRO - 17 October 2018: Egypt plans to issue its first international sovereign sukuk, or Islamic bonds, in the 2019-2020 financial year, Finance Minister Mohamed Ma'it told Reuters on Wednesday.

Ma'it did not give the size of the planned offering. Egypt is aiming to issue about $20 billion in foreign currency-denominated bonds by 2022.

Issuing sukuk could allow Egypt to attract a new class of investor as it implements a three-year IMF-backed economic reform program agreed in late 2016.

The country has borrowed heavily from abroad since then and faces a tough repayment schedule and a rising bill for oil imports.

Egypt’s foreign debt stood at $92.64 billion at the end of June, an increase of 17.2 percent from the previous year.

Egyptian officials have previously announced their intention to issue Islamic bonds, but the plans did not materialise.