صكوك مصرية جديدة بقيمة مليار دولار لتنويع التمويل مع الكويت

The Egyptian government has planned to issue sovereign bonds worth one billion dollars in a private offering directed to the State of Kuwait, according to the Eastern Bloomberg agency.

A government official confirmed to "Bloomberg" that most of the technical and legal procedures for the offering have been completed, indicating that the bonds will have a three-year term with semi-annual returns.

The Egyptian official gazette published a presidential decree yesterday (Tuesday) allocating land with an area of 174.4 million square meters in the Red Sea Governorate to the Ministry of Finance, aimed at supporting the issuance of sovereign bonds and reducing public debt.

This allocation comes to meet the requirements of Islamic law, which stipulates that bonds must be linked to real assets, unlike traditional bonds.

Egypt issued its first sovereign bonds in its history in 2023, valued at 1.5 billion dollars, and achieved subscription requests more than four times the amount. This step coincides with Egypt's repayment today (Wednesday) of the principal on bonds worth 1.5 billion dollars, according to the Ministry of Finance's data.

Egypt has chosen five banks to act as financial intermediaries and lead advisors for the issuance, namely: HSBC, Citibank, Dubai Islamic Bank, First Abu Dhabi Bank, and Abu Dhabi Islamic Bank.

Another official explained that Egypt decided to postpone the issuance of public international bonds to the first quarter of the next fiscal year, while the private offering with Kuwait comes as part of an agreement with Kuwait Finance House to diversify funding sources and enhance the use of Islamic financing tools, noting that this offering is fully dedicated to Kuwait and does not include a public subscription.

It is worth mentioning that Kuwait has deposits worth four billion dollars in the Central Bank of Egypt, with payments due in September 2025 and April 2026.