Egypt issues $1bn international bonds in first MENA offering since Iran conflict escalation

Egypt has reaffirmed its access to international capital markets despite heightened geopolitical uncertainty, issuing $1bn in social and development bonds in what the government described as the first sovereign issuance of its kind in the Middle East and North Africa (MENA) since the escalation of the Iran conflict.

The move reflects Egypt’s ongoing efforts to diversify financing instruments, broaden its investor base, and secure sustainable funding sources for development priorities.

In a statement issued on Wednesday, the Ministry of Finance said the new eight-year issuance, carrying a yield of 6.7%, attracted strong interest from international investors, with subscription requests exceeding the targeted issuance size by more than fivefold.

According to the ministry, proceeds from the bond sale will be directed toward financing development projects aimed at improving healthcare and education services, while strengthening investment in human capital.

The ministry added that Egypt is currently repaying more external debt than it is borrowing in an effort to reduce the outstanding external debt of budget-sector entities. It noted that the government is targeting an annual reduction in external debt ranging between $1bn and $2bn.

The statement also highlighted the government’s proactive management of geopolitical tensions and global economic challenges, saying these measures have helped reinforce investor confidence and sustain strong demand for Egyptian debt issuances.

The ministry further noted that maintaining access to stable external development financing sources has contributed to improving market sentiment toward Egypt and supporting confidence among international investors.

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المصدر: Daily News Egypt