Bigger plans for sukuk

In a bid to diversify its sources of finance, the government issued Egypt’s first sukuk (Islamic bonds) offering of $1.5 billion last week. The offering was fourfold oversubscribed, wetting appetites for more Sharia-compliant offerings, with the Ministry of Finance also revealing three-year plans to raise a further $5 billion through this kind of bonds.

The high demand for the offering stems from its high yield of 11 per cent. According to sources speaking to Al-Ahram Weekly, the aim was for a final yield averaging 5.6 per cent, but it was raised in line with increased interest rates after the outbreak of the Russia-Ukraine war.

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