Issuer: Egyptian Financial Company for Sovereign Taskeek
Obligor: Arab Republic of Egypt
Size: $1.5 billion
Structure: Sukuk
Tenor: Three years
Banks: Abu Dhabi Islamic Bank, Citi, Crédit Agricole, Emirates NBD Capital, First Abu Dhabi Bank and HSBC (joint lead managers and bookrunners)
Date: February 2023
In one of the most keenly anticipated debt market transactions, the Arab Republic of Egypt finally delivered its maiden international sukuk last year. In doing so, it joined the ranks of almost every other Islamic country in accessing this form of financing.
The transaction, first mooted a decade ago, was not only its inaugural sukuk, but the country’s first debt issue on the international markets since 2021, ending a hiatus caused in part by sharply rising interest rates.
With such a long time lag since the country last issued, investor anticipation had been building. This was rewarded in February when Egypt priced its $1.5 billion three-year sukuk with a profit rate of 10.875%. Reoffer was at 99.688, for a yield of 11%.
At its peak, the orderbook was over $6 billion, with strongest demand from regional shariah-compliant investors in the Middle East and North Africa, which received 59% of the allocation.