Arab Finance: The Egyptian Cabinet has approved the Ministry of Finance’s plan for international bond issuances worth a total of $3 billion during fiscal year (FY) 2026/2027 to diversify its financing sources and instruments while further reducing external debt, according to a statement.

This comes amid rising demand from international investors for diversified bonds and innovative financing instruments, according to a survey conducted among several investment banks.

The government will continue its policy of reducing the budget sector’s external debt, which has fallen by $6.5 billion over the past three years.

Last FY, the ministry successfully executed four international issuances totaling $4 billion with maturities ranging from two to six years. These issuances included sovereign sukuk, social bonds, and sustainable Samurai bonds guaranteed by the African Development Bank (AfDB), in addition to re-launching existing bonds.

In this regard, the government plans to execute a total international issuance encompassing conventional and innovative bonds, as well as Panda bonds backed by credit guarantees.

Execution will be contingent upon anticipated demand from foreign investors and market conditions, based on recommendations from investment banks, lead managers, and issue promoters during FY2026/2027.