Egypt is heading back to the markets with a $4 billion international bond plan, hoping to stabilize its financing needs after one of its deepest currency crises in decades.
Finance Minister Ahmed Kouchouk told investors in London the government is weighing multiple instruments—dollar, euro, yen, yuan, sukuk, and sustainability bonds—to cover roughly 40% of its $11 billion external funding gap this fiscal year.
The rest? Likely covered by concessional loans. The move comes after a $35 billion deal with the UAE, a steep 40% devaluation of the pound, and renewed momentum with the IMF. It’s a bold bet on regaining investor trust—while funding costs remain high.
Egypt’s average dollar bond yield sits around 9.3%, and it recently sold $750 million of eight-year bonds near that level. Despite the cost, some investors aren’t blinking. Egypt’s inflation-adjusted rates remain among the highest globally, keeping local debt attractive. Its 2059 dollar bonds even gained more than 1.2 cents on the dollar last Friday—top performer among EM sovereigns. To lure more foreign inflows, Egypt is working on a relisting in JPMorgan’s local bond index and pushing ahead with talks to clear local-currency debt through Euroclear. On the domestic side, a debut pound-denominated sukuk and retail savings bonds are on the table, aimed at adding liquidity and drawing in everyday Egyptians.
There’s also the IMF angle. If Egypt completes the fifth and sixth reviews of its $8 billion program later this year, it could unlock another $2.4 billion in funding. Kouchouk said the asset sale strategy has shifted from quantity to impact: three to four “strategic” privatizations are planned this fiscal year in sectors like telecom, finance, and airport operations.
The same is penciled in for next year. On top of that, discussions are underway with Kuwait to potentially convert $4 billion in deposits into direct investments, while Qatar’s $7.5 billion package—first announced in April—is now in advanced stages. If it all comes together, Egypt could be entering a new phase of market re-engagement.
