Completing the preparation of the first sovereign sukuk issuance in Egypt

The Ministry of Finance, through the Egyptian Financial Company for Sovereign Taskeek, succeeded in offering the first issuance of sovereign sukuk in the history of Egypt, with a value of 1.5 billion US dollars, which witnessed a remarkable turnout, as subscription requests amounted to about 6.1 billion US dollars, meaning that the subscription was covered more than four times. More than 250 investors applied in various global financial markets, and the issuance attracted a new base of investors in the Gulf countries and East Asia, in addition to European countries and the United States of America, who prefer financial transactions compatible with the principles of Islamic Sharia, in addition to the quality of investors witnessed in the offering, represented in pension funds, insurance funds, investment funds, banks, and others that are characterized by maintaining long-term investments in a way that reduces price fluctuations. The issuance cost was less than the required return on Egyptian bonds in the international secondary markets by more than seventy points, as the coupon price on the issuance was reduced by about 75 basis points compared to the opening prices announced at the beginning of the offering process at the level of 11.625%, so the issuance coupon closed at 10. 875%, and the issuance was carried out in cooperation with a number of leading banks in the field of Islamic finance and sukuk issuances and with the assistance of local and international law firms, to cover all technical, legal and marketing aspects in accordance with international practices in accordance with the principles of Islamic Sharia.