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In a bid to beef up its foreign currency reserves, Egypt has turned to the international debt market. The country started selling its first dollar-denominated sovereign sukuk.
Egypt has been facing a severe economic crisis as a fallout of the Pandemic and the Ukraine war. Faced with an acute shortage of foreign currency, the government devalued the pound three times and reached an agreement with the International Monetary Fund (IMF). In a bid to beef up its foreign currency reserves, Egypt has turned to the international debt market. The country started selling its first dollar-denominated sovereign sukuk. The deal is being managed by Citigroup, Credit Agricole, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Group, and Abu Dhabi Islamic Bank.
Moody’s, the global credit rating agency, has assigned a (P)B3 rating to Egypt’s proposed $5 billion Sukuk programme. It also downgraded the country’s sovereign credit rating to B3 with a stable outlook.
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According to the International Monetary Fund (IMF), Egypt’s external financing gap stands at around U S $17 billion. About $14 billion is expected to be raised from international and regional partners. In February, Egypt had to repay a $1.25 billion international bond.
