Egypt to begin offering sukuk in first half of 2022, says ministry

Egypt has been trying to diversify and extend the average maturity of its debt. — Reuters pic
Egypt has been trying to diversify and extend the average maturity of its debt. — Reuters pic

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CAIRO, Aug 24 —Egypt will begin issuing sukuk, or sharia-compliant Islamic bonds, in the first half of 2022, the finance ministry said in a statement today.

The exact timing and size of the first offering is yet to be determined. Executive regulations for a new law allowing for issuance of sukuk are expected in the next three months, and the government is planning to form a state-owned company to manage sukuk issuance.

Returns on sukuk, which could be offered in local or foreign currency, would be taxed in the same way as Egyptian treasury bonds, the finance ministry said.

Money raised through sukuk would be used to help fund the government’s social and economic development projects, the ministry added.

Egypt has been trying to diversify and extend the average maturity of its debt. — Reuters

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