Egypt has regained access to international markets despite ongoing geopolitical tensions, launching $1 billion in social and development bonds for the first time in the Middle East and North Africa since the start of the Iran war.
The move reflects the government’s efforts to diversify financing tools and expand its investor base.
In a press statement released on Wednesday, The Ministry of Finance said the eight-year bond offering carried a 7.6 percent yield and received strong investor confidence. Investor orders exceeded the targeted issuance by more than five times.
According to the ministry, proceeds from the offering will support development projects aimed at improving healthcare and education services, while boosting investment in human capital.
The ministry also said that Egypt is “repaying more than it borrows” to help reduce external debt owed by budget entities.
It added that the government aims to cut external debt by around $1 billion to $2 billion annually.
The ministry said Egypt’s proactive approach to geopolitical tensions and global challenges has helped strengthen investor confidence and attract demand for Egyptian issuances.
It added that securing external development financing in a sustainable way continues to support market confidence.
