The Clap
Finance Minister Mohamed Maait told CNBC Arabia on Wednesday that Egypt’s first Sharia-compliant bond (Sukuk) issuance will be between $1-2 billion.
Who is affected
The government plans to set up a state-owned company to manage the Sukuk issuance, which could be offered in local or foreign currency. The issuance is expected to take place sometime in the second half of the current fiscal year (first half of 2022).
Why is this important
Sukuk will be Egypt’s fourth source of financing, along with treasury bills, domestic & foreign loans, and credit facilities. It is set to attract investors interested in investing in Sharia-compliant investment assets.
