The Egyptian Ministry of Finance has launched on international markets its second issue of sovereign sukuks for the fiscal year 2024/25, the ministry said in a statement on Wednesday 25 June. Kuwait Finance House (KFH), one of the largest Islamic banks in the world, said in a statement on Wednesday 25 June. Kuwait Finance House (KFH), one of the largest Islamic banks in the world, in particular invested in this private placement, thus strengthening the partnership and investment with Egypt.

Egypt sold $1 billion in three-year Islamic bonds, or sukuk, to Kuwait Finance House, an Islamic bank, the Egyptian Finance Ministry announced Wednesday.

This sukuk, with an annual coupon of 7.875%, was the second instrument of its kind issued since the government established a $5 billion sukuk program. The first sukuk, worth $1.5 billion, was sold in February 2023 with an 11% return

The Egyptian finance minister said in April that Egypt would sell $2 billion worth of sukuk in 2025.

The new sukuk will help repay a $1.5 billion 10-year eurobond that, according to central bank data, expires this month.