Arab Finance: Egypt has raised $1 billion in an eight-year USD-denominated social bond issuance, drawing in robust investor demand despite market pressures amid the ongoing regional conflict, Al Ahram reported, citing Bloomberg data.
The eight-year bonds received subscription orders exceeding $3.9 billion, reducing the annual yield to 7.6% from 8% due to strong demand.
HSBC Bank, Deutsche Bank, and Citibank led the offering, which marks the first for the international market since the beginning of the US-Israel war on Iran.
Proceeds from the issuance will be used to finance and refinance social projects.
The issuance is part of the government’s effort to diversify financing tools, lower borrowing costs, expand the investor base, extend debt maturities, manage debt more efficiently, and reduce the debt-to-GDP ratio.
In a call with Chinese Foreign Minister Wang Yi last March, Minister of Foreign Affairs Badr Abdelatty signaled Egypt's interest in doubling the value of its currency swap agreement with China, addressing the government's plans to increase issuance of $500 million in Chinese bonds.
In November 2025, the Ministry of Finance launched its first sovereign sukuk issuance in the local market, valued at EGP 3 billion, through the primary dealer system, with a three-year maturity period.
