Egypt issues $500 mln Yen-denominated sustainability samurai bonds

The issuance, backed by a partial credit guarantee from the African Development Bank Group, is split into two tranches, according to a statement released Monday.

The first tranche totals 56 billion yen and carries a five-year maturity through 2031, while the second tranche is worth 24 billion yen with a 10-year maturity through 2036.

Samurai bonds are yen-denominated debt sold in Japan by foreign issuers. The proceeds from sustainability Samurai bonds are earmarked for environmental and social projects.

Egypt has been preparing for another return to Japan’s capital markets after raising a similar 80 billion yen in October 2023. The country first entered the Samurai market in 2022 and has since completed two issuances, each worth about $500 million.

Egyptian Minister of Finance Ahmed Kouchouk said the move forms part of Egypt’s strategy to diversify financing tools, maintain the country’s access to international capital markets, acquire private investments and finance sustainable development priorities, through the partnership with the AfDB.

The bond will also help Egypt’s economy remain resilient amid geopolitical conflict and market volatility, lower borrowing costs, expand the investor base, manage debt and reduce the debt-to-GDP ratio.

Additionally, the move aligns with Egypt’s objectives for its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) with the International Monetary Fund (IMF).