Egypt plans EGP 5B sovereign sukuk after rate cut
Updated 12/28/2025 10:03:00 AM
Arab Finance: Egypt’s Ministry of Finance is set to issue EGP 5 billion in three-year local sovereign sukuk through an auction scheduled for Monday, December 29th, with settlement due on Tuesday, December 30th, according to data released by the Central Bank of Egypt.
The issuance comes as the government gauges investor appetite following last week’s interest rate cut, marking a key moment for the domestic debt market.
The offering represents the first practical test of market pricing after the CBE reduced interest rates by 100 basis points, a move expected to influence yields across government debt instruments.
Although the sukuk is part of an ongoing series with a fixed yield of around 21.224%, market participants expect the auction to reflect the new rate environment, particularly after the overnight deposit rate was lowered to 20 percent.
With this tranche, the total amount raised under Egypt’s sovereign sukuk program reaches EGP 20 billion.
The Ministry of Finance aims to leverage growing investor interest to cover targeted sukuk issuances totaling EGP 180 billion before the end of the current fiscal year (FY) 2025/2026.
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