Egypt has issued $1 billion in sovereign sukuk through a private placement, marking its return to international debt markets despite rising regional instability, the Finance Ministry said in a statement on Wednesday. The three-year sukuk, compliant with Islamic finance principles, carries an annual coupon of 7.875 per cent. It is the second issuance under Egypt's $5 billion international sukuk programme, following the country's debut offering in February 2023. The ministry said the latest sukuk was fully subscribed by Kuwait Finance House, one of the largest Islamic banks globally, in a move that strengthens investment ties between Egypt and Kuwait. The issuance comes amid challenging global conditions, including heightened regional tensions that have raised risk and uncertainty across markets. The ministry cited improved economic indicators and macroeconomic stability as key factors enabling the issuance. The deal supports Egypt's strategy to diversify funding sources, extend debt maturities, and reduce the cost of external borrowing. It also forms part of the government's broader plan to lower external debt levels by $1–2 billion in 2024. "Preliminary indicators point to our ability to meet this target," the statement said. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
