Arab Finance: Egypt has successfully issued JPY 80 billion ($500 million) in sustainability samurai bonds, backed by a partial credit guarantee (PCG) from the African Development Bank (AfDB) Group, according to a press release.

The issuance is offered in two tranches: a five-year tranche rated ‘AA+ ’ and a 10-year tranche rated ‘AA’. It aligns with Egypt’s strategy to further diversify its funding profile and extend the maturity of its debt portfolio.

Moreover, the transaction allows the country to diversify the currency composition of its external debt and mobilize long-term financing to drive sustainable development priorities under its Sovereign Sustainable Financing Framework.

Meanwhile, the proceeds from the issuance will be allocated to eligible sustainable expenditures under the framework, including investments in healthcare, education, renewable energy, energy efficiency, climate adaptation, water and wastewater management, digital infrastructure, and inclusive socioeconomic development.

The offering comes amid heightened geopolitical uncertainty and increased volatility in global capital markets, highlighting the importance of diversified funding sources and reliable access to long-term capital.

AfDB's ‘AAA’ credit rating and PCG played a vital role in helping Egypt secure long-term financing on competitive terms while supporting its objective of extending debt maturities.

For his part, Minister of Finance Ahmed Kouchouk said: “We deeply value the African Development Bank’s continued partnership and its confidence in Egypt’s economic reform agenda. This partial credit guarantee helps Egypt further diversify its financing through innovative sustainable financing instruments.”

He added: “Under Egypt’s Sovereign Sustainable Financing Framework, the Sustainability Samurai Bond will channel long-term resources to priority investments in human capital, sustainable infrastructure, climate action, and inclusive growth, in line with Egypt Vision 2030.”

Ahmed Attout, Director of the AfDB’s Financial Sector Development Department, commented: “This operation demonstrates how the bank’s partial credit guarantee can help regional member countries mobilize private capital and access long-dated financing on competitive terms.”