Back to the complete issue
Thursday, 24 February 2022

Gov’t appoints managers ahead USD 2 bn sukuk sale

Egypt has reportedly appointed six international banks to manage its maiden USD 2 bn sovereign sukuk issuance, Bloomberg reports, citing unnamed sources it says have knowledge of the matter. The sources reportedly said the issuance could go ahead in the second quarter of this year — in line with previous statements from the Finance Ministry, which has said it expects to wrap the issuance by the end of the fiscal year in June.

The banks: HSBC, Citigroup, Abu Dhabi Islamic Bank, Credit Agricole, Emirates NBD and First Abu Dhabi Bank.

Now we just need those exec regs. FinMin in January got the green light from Cabinet to start preparing to take the issuance to international markets, but it won’t go ahead until the executive regulations of the Sovereign Sukuk Act — which was signed into law last year — are published. The government had been looking to finalize the exec regs by the end of January, but we’ve seen no sign of them yet. The Financial Regulatory Authority (FRA) and Al Azhar are working with the ministry on the regulations.

What we know about the sukuk so far: The sharia-compliant bonds will be issued on both the local and international stock exchanges, Finance Minister Mohamed Maait said previously, adding that returns and trading on the securities will be subject to the same tax rules as treasury bonds. The issuance is part of FinMin’s strategy to reduce government debt and shift towards longer-term borrowing, which saw it issue its first green bonds in 2020. Plans are also underway to sell new “floating rate” bonds.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.