In an interview with Al Arabiya, Egypt’s Minister of Finance, Dr. Mohamed Maat, confirmed the possibility of issuing the first sovereign sukuk in Egyptian history with a value of up to two billion dollars at the start of the new fiscal year, but it is yet has not been finally determined.
He added that the issuance process has requirements such as the formation of a sukuk company, a working group and a Sharia Control Committee, emphasizing that “many issues have yet to be resolved.”
The finance minister revealed that foreign investment in government debt instruments runs between $28 and $29 billion by the end of May.
He added that he does not rule out an offer of green bonds in the next financial year, “though the matter is not yet settled, but in the event of an offer, its size will be close to the previous offering, which amounted to $500 million.” According to Reuters”.
The Finance Minister’s speech comes a day after Egypt released dollar treasury bill For one year, at a value of $540.6 million, with an average return of 3.088%.
Egypt aims to reduce the total deficit to about 6.6% of GDP, and achieve an initial surplus of 1.5% of GDP by the end of 2021/2022, which begins early next month.
The budget targets a growth rate of 5.4% of GDP, and works to achieve a primary surplus of around 1.5% of GDP during the current financial year as against the estimate of a primary surplus of around 0.9% of output. does.
Last February, Egypt managed to sell $3.75 billion worth of international bonds with “very low” returns compared to previous offerings. Citigroup, First Abu Dhabi Bank, Goldman Sachs, HSBC, JPMorgan Chase and Standard Chartered arranged and managed the offering.
The bond was issued in three tranches, the first with a 5-year tenor of $750 million and a return rate of 3.875 percent, the second with a 10-year tenor of $1.5 billion and a return rate of 5.875 percent, and a final 40-year period with a value of $1.5 billion and a return rate of 7.5%.
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