Islamic sukuk: Egypt resorts to issuing them at high interest rates to pay off outstanding debts

  • Abdul Basir Hassan
  • BBC – Cairo

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Egypt offered sovereign Islamic sukuk, guaranteed by the Ministry of Finance, at a value of one and a half billion dollars for the first time in the country’s history, this week.

The yield of these sukuk is almost the highest in the world at 11 percent, despite its decline by more than half a percent from its guiding price, which was 11.625 percent.

The Egyptian offering of sukuk came to pay international financial obligations (debts) due during the last week of February.

According to a statement by the Egyptian Ministry of Finance, subscription requests amounted to regarding $6.1 billion, which means exceeding the value of the issue by more than four times.

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