• Finance Ministry says demand topped $9 billion for the Sharia-compliant debt.
• The sukuk was split into $700m due 2029 at 6.375% and $800m due 2032 at 7.95%.
• Cairo seeks cheaper funding, broader investor base amid economic pressures.

Egypt has issued a $1.5 billion sovereign sukuk at more favorable rates than its outstanding eurobonds, the Finance Ministry announced on October 1.

Investor demand was strong, with order books exceeding $9 billion. The sukuk, set to be finalized on October 7, was issued in two tranches: $700 million maturing in 2029 with a yield of 6.375%, and $800 million maturing in 2032 at 7.95%.

The combined average cost of 7.2% is significantly below the yields of Egypt’s existing five- and seven-year eurobonds traded on secondary markets.

According to the Finance Ministry, the deal—arranged by Abu Dhabi Islamic Bank, Citibank, Dubai Islamic Bank, First Abu Dhabi Bank, and HSBC—aims to diversify state budget funding sources, broaden the investor base, cut borrowing costs, and extend debt maturities.

The issuance comes as Egypt faces tight foreign currency reserves, high inflation, and a public debt-to-GDP ratio of 85%.

Egypt first tapped the sukuk market in February 2023 with a $1.5 billion issuance, followed by a $1 billion private placement with Kuwait Finance House in June 2025.