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Thursday, 20 January 2022

Our maiden sovereign sukuk issuance is inching closer

The Finance Ministry just got the green light to start preparing to take its first sovereign sukuk issuance to international markets, after the Madbouly Cabinet signed off on the move during its weekly meeting yesterday. The issuance is expected to drop sometime in the first half of this year, officials have said.

But first: The Finance Ministry has said the government is looking to finalize the executive regulations of the Sovereign Sukuk Act by the end of the month, setting the stage for the country’s maiden issuance before the end of the fiscal year in June. Officials have previously suggested it could be in the c. USD 2 bn range. The Financial Regulatory Authority (FRA) and Al Azhar are working with the ministry on the regulations, which were previously expected to be issued by November last year.

Also approved yesterday:

  • A presidential decision to reallocate some areas of state-owned land to the General Authority for Reconstruction and Agricultural Development in Assiut, Minya, and Beni Suef to be used in various development projects. The land was previously held by the New and Renewable Energy Authority (NREA). Meanwhile, several plots of state-owned land in Assiut and Minya have been allocated to the NREA for solar and wind projects.
  • A presidential decision to add USD 28.3 mn to the Assistance Grant Agreement between Egypt and the US, to bring the total amount of the grant to USD 155.9 mn, which will go towards supporting MSMEs and entrepreneurship, as well as technical vocational education, training and workforce development.

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