Egypt plans Sukuk to fund projects

Egypt’s finance ministry announced on Monday that it aims to issue sharia-compliant Sukuk bonds, as well as more Eurobonds and Green bonds, to fund public projects.

As part of a program coinciding with their hosting of the COP27 United Nations Climate Change Conference in November, the country wants to raise the government’s commitment to state-backed green investments in next year’s budget, according to the ministry.

In September 2020, Egypt’s government became the first in the Middle East and North Africa to issue green bonds, with a $750 million transaction to fund environmentally friendly initiatives in the energy and transportation sectors.

The finance ministry said it wants to increase its contribution to government-backed green initiatives to 30% of total public investment in the next fiscal year, up from 15% in the current fiscal year that ends on June 30.