Egypt issues $1B sovereign sukuk to strengthen financing strategy
CAIRO - 25 June 2025: The Egyptian government has successfully launched its second sovereign sukuk, compliant with Islamic Sharia principles, with a total value of $1 billion.
This sukuk was offered as a private placement for the 2024–2025 fiscal year, as stated by the Ministry of Finance.
The issuance features an annual coupon rate of 7.875 percent and a maturity of three years. It aligns with Egypt's strategy to diversify its financing sources across various markets, instruments, and investor groups.
The Ministry further explained that Kuwait Finance House (KFH) fully subscribed to this private placement, indicating strong investor confidence.
This second sukuk issuance underscores the Ministry of Finance's capability to meet its financial targets despite the ongoing challenges in the global economy and geopolitical landscape.
It also highlights the government's success in expanding its financing tools and sources, tapping into different currencies, markets, and investor bases while securing favorable terms.
This issuance follows Egypt's first sovereign sukuk, launched in February 2023, under the international sovereign sukuk program, which has a total value of $5 billion.
Moreover, the sukuk supports the Ministry's broader goals, such as diversifying debt instruments, entering new markets, reaching new investor segments, extending the debt maturity profile, and lowering the cost of external debt—ultimately reducing the overall financing cost.
The Ministry also reiterated its commitment to reducing the external debt for the state's general budget entities by $1–2 billion during this year, with preliminary indicators showing strong progress in achieving these objectives.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
40 minutes ago
- Daily News Egypt
Egypt inaugurates first Bosch home appliance factory in Africa with €55m investment
Egypt's Prime Minister Mostafa Madbouly inaugurated the first African factory of BSH, the German-owned home appliance giant behind the Bosch brand, marking a milestone in Egypt's industrial development and regional positioning. Located in 10th of Ramadan City, the factory represents the company's first manufacturing base on the continent, with a total investment exceeding €55m. The facility is expected to generate around 1,000 direct and indirect job opportunities, with 50% of its production designated for export to markets across Africa and the Middle East. Accompanied by key ministers and senior officials, Madbouly affirmed that Egypt's economic reforms and investor-friendly incentives have successfully attracted major global industrial players. The Bosch plant, he said, will serve as a strategic launchpad for regional expansion, leveraging Egypt's geographic advantage, skilled labour, and growing domestic market. Top executives from BSH Global attended the inauguration and praised Egypt's strategic positioning and the strong support extended by local authorities. Built over an 80,000-square-metre plot, the factory will manufacture more than 350,000 gas ovens annually using 100% Egyptian labour and German engineering expertise. The facility adopts a new BSH production model focused on integrating the local workforce rather than relying heavily on automation—an approach designed to capitalise on Egypt's labour cost advantage while upholding Bosch's global quality standards. This project aligns with Egypt's broader industrial strategy and vision to become a regional hub for manufacturing and export. BSH also confirmed its intention to expand the facility in future phases, further increasing production capacity and employment opportunities. Prime Minister Madbouly toured the production lines and met with workers, reiterating the government's commitment to supporting industrial investment, strengthening local supply chains, increasing exports, and facilitating technology transfer. In his remarks, Luis Alvarez, Chairperson of BSH Egypt and Morocco, explained that the decision to establish BSH's first African factory in Egypt reflects a long-term strategic vision. He highlighted Egypt's potential as a gateway to continental and regional markets and noted that the country is now home to BSH's 40th production facility worldwide. BSH operates 39 factories across Europe, North America, and Asia and maintains a presence in more than 60 countries. The new Egyptian plant is now a critical link in this global network and will serve as a springboard into emerging markets across the Global South. Designed with strict sustainability standards, the factory combines advanced infrastructure with local talent. BSH plans to export 50% of its output to the Middle East, Africa, Australia, Canada, and Latin America. Ahmed Riad, Executive Board Member and CFO of BSH Home Appliances Egypt, noted that the factory's 90 cm cookers were developed specifically to match Egyptian consumer preferences. The current local component ratio stands at 50%, with plans to exceed 70% within two years. He also revealed that BSH is exploring the possibility of expanding its product line beyond ovens and cookers, further strengthening Egypt's position as a regional manufacturing hub. Following the Bosch factory inauguration, Prime Minister Madbouly also opened Jumia's largest logistics warehouse in Egypt—a major development for the country's e-commerce and digital logistics infrastructure. Spanning over 27,000 square metres and equipped with state-of-the-art technologies, the new facility is designed to accelerate delivery times, enhance storage efficiency, and support Jumia's growing operations, particularly in Upper Egypt. It is expected to create approximately 10,000 direct and indirect jobs. The warehouse supports Egypt's goal to become a regional digital hub, aligning with Vision 2030 and national efforts to expand digital services, boost youth employment, and support tech-driven development. Minister of Communications and Information Technology Amr Talaat highlighted that the software powering Jumia's platform was developed locally by Egyptian engineers. Jumia Egypt CEO Abdellatif Olama emphasised the strategic importance of Egypt within Jumia's regional operations. The country hosts one of the company's largest tech hubs in Africa and plays a pivotal role in exporting digital solutions across the continent. He reiterated Jumia's commitment to enhancing Egypt's role in Africa's digital transformation and to supporting local manufacturing and logistics ecosystems.
Daily News Egypt
40 minutes ago
- Daily News Egypt
MSMEDA disburses EGP 57.5bn in project funding over 11 years: CEO
Bassel Rahmy, CEO of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), announced that the agency has disbursed a total of EGP 57.5bn in funding for micro, small, and medium enterprises from July 2014 to May 2025. This figure marks a substantial increase compared to pre-2014 levels and reflects the state's intensified support for the sector since President Abdel Fattah Al-Sisi took office. Rahmy noted that this funding has contributed to the creation of more than 3.4 million job opportunities for Egyptian men and women, underpinning the agency's role in promoting employment and entrepreneurship nationwide. He added that 47% of total funding was channelled to governorates in Upper Egypt, aligning with the region's development priorities and financial needs. The announcement coincided with the celebration of World Micro, Small and Medium-sized Enterprises Day, held annually on 27 June. Rahmy highlighted the state's strategic commitment to supporting the small enterprise sector through comprehensive care, funding mechanisms, and the creation of an enabling environment that fosters the establishment and growth of industrial and productive projects. Since President Al-Sisi's inauguration, Rahmy explained, the state has launched numerous initiatives aimed at supporting citizens and encouraging them to embrace entrepreneurship and self-employment as a path to economic empowerment. These efforts reflect a deep understanding by the political leadership of the sector's critical role in driving economic development and industrial advancement. He emphasised that all relevant government bodies have worked in coordination to enhance the investment climate for small businesses, thereby maximising their contribution to the national economy. These efforts are in line with the directives of Prime Minister Mostafa Madbouly, who also chairs MSMEDA's Board of Directors. Rahmy also pointed to landmark progress in 2025, including successful cooperation with the Ministry of Finance and the Egyptian Tax Authority to implement Law No. 6 of 2025. The law addresses longstanding tax challenges for small businesses and introduces several key facilitations—most notably a simplified tax regime starting with a rate of 0.4% of annual turnover for businesses generating up to EGP 500,000, scaling up to 1.5% for those with turnover between EGP 10m and EGP 20m. The law also offers exemptions from stamp duties and other taxes. He affirmed MSMEDA's active role in integrating the informal economy into the formal sector through structured plans to regularise and legalise informal enterprises. These efforts are aimed at ensuring long-term project sustainability, improving productivity, and enabling access to the benefits offered under Law No. 152 of 2020 on Enterprise Development. The agency provides documentation and licensing services to help businesses operate legally, paving the way for them to access incentives such as marketing support and eligibility for the government's 40% procurement allocation to small enterprises. In the area of capacity building, Rahmy noted that MSMEDA has provided entrepreneurship training to more than 83,000 individuals. This initiative seeks to foster a new generation of skilled and capable entrepreneurs across Egypt. To enhance product marketing and commercial exposure for its clients, MSMEDA has organised 1,441 exhibitions featuring 32,492 project owners. These events generated total sales and contract values exceeding EGP 2.1bn. Rahmy concluded by calling on young people to take initiative by visiting the agency's branches across governorates or accessing its website to learn more about its financial and technical services. These services, he said, can support aspiring entrepreneurs in launching or expanding businesses across a wide range of sectors. World MSME Day was officially designated by the United Nations on 27 June following a proposal submitted by Egypt in 2016 via the World Association for Small and Medium Enterprises. The day aims to celebrate and recognise MSMEs globally as a fundamental pillar of economic growth and stability.
Daily News Egypt
3 hours ago
- Daily News Egypt
HDB named among top 100 best-performing companies on EGX in 2024
The Housing and Development Bank (HDB) has been recognised as one of the top 100 best-performing companies on the Egyptian Exchange (EGX) for 2024, during the tenth edition of the Egypt for the Better Summit 2025. The event was held under the patronage of Prime Minister Mostafa Madbouly and attended by a distinguished group of ministers, executives, and senior leaders from major institutions and companies active in the Egyptian market. This recognition underscores HDB's sustained success and consistent upward trajectory, as it continues to deliver strong financial results and operational resilience. In 2024, the bank recorded significant growth across all key performance indicators, in accordance with the summit's evaluation criteria, which include market capitalisation, total returns, revenue and profit development, operational performance, and other financial metrics that demonstrate long-term sustainability and robust growth. HDB's success in 2024 was driven by its focus on enhancing the efficiency of operational processes and proactively managing financing costs. By adopting a flexible and innovative business model, the bank effectively seized emerging opportunities and optimised resource utilisation to maximise profitability on a sustainable basis. This strategic direction translated into notable improvements in financial performance. Net interest income increased by 67.6% to reach EGP 20.5bn, while total assets grew by 43.4%, reaching EGP 179.5bn. Most notably, the bank succeeded in boosting its net profits to EGP 11bn in 2024, reflecting an impressive 83.1% year-on-year growth. These results reaffirm the successful implementation of the bank's five-year strategy and its continued consolidation as one of Egypt's leading full-service commercial banks. The award was received by Hassan Ghanem, CEO and Managing Director of HDB, who expressed pride in the bank's continued growth and recognition in 2024. He emphasised that the performance reflects the bank's strong financial foundation and its consistent, confident approach to sustainable development. Ghanem affirmed the bank's commitment to capitalising on promising opportunities and delivering strong financial and operational results in the coming period. He highlighted the launch of HDB's new 2025–2030 strategy, designed to maintain the bank's leadership in the banking sector and enhance its resilience in a constantly evolving economic environment.
