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The upcoming issuances are part of the government’s broader plan to bridge a USD 11 billion external financing gap, with the bonds expected to cover approximately 40% of the shortfall. The remainder will be sourced through concessional financing, including low-interest loans and support from development partners.
Egypt plans to issue up to USD 4 billion in international bonds over the next 12 months, according to Finance Minister Ahmed Kouchouk. The upcoming issuances are part of the government’s broader plan to bridge a USD 11 billion external financing gap, with the bonds expected to cover approximately 40% of the shortfall. The remainder will be sourced through concessional financing, including low-interest loans and support from development partners.
Kouchouk stated that Egypt is exploring a diverse mix of instruments for the international market. These could include USD- and EUR-denominated bonds, green and sustainability bonds, Islamic sukuk, and potentially bonds denominated in Chinese yuan (CNY) and Japanese yen (JPY). This multi-currency approach is for broadening the investor base and for reducing dependence on a single funding channel.
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Egypt’s existing US dollar bonds currently trade at an average yield of 9.3%, signaling high borrowing costs for any future Dollar debt. These initiatives come amid ongoing fiscal reforms and a broader push to stabilize Egypt’s macroeconomic environment, which has been under pressure due to high inflation, currency depreciation, and rising global interest rates.
