1st Islamic sukuk bond issued

Islamic sovereign sukuk worth a total $1.5 billion have been issued for the first time in Egypt, a government minister announced on Wednesday.

Subscription on these bonds is valued at $6.1 billion, covered fourfold its face value, Finance Minister Mohamed Maeet said.

The bond yield was lowered to 11 per cent from 11.67 per cent due to high demand – 250 investors have purchased the bonds, the minister added.

The bonds have attracted a fresh base of investors from the markets of the Gulf Co-operation Council (GCC), Europe and the US.

Asset management funds, retirement trusts, banks, insurance and investment funds were the main investors that bought the bonds, Maeet said.

“The success of this issue comes amid turbulent economic and political conditions worldwide and the higher costs of financing as a result of global inflation,” Maeet added.

This success is a reflection of the confidence of capital markets and investors in the Egyptian economy and its resilience to internal and external shocks.