Egypt offers initial price by 11.625% of USD dominated sukuk

Egypt offered a preliminary indicative price of around 11.625 percent for benchmark-sized USD sukuk with a three-year tenor, according to Reuters’ document published on Tuesday.

This will be followed by the sale of standard-sized instruments for three years — usually at least $500 million — according to market conditions, the document showed.

The deal’s participating managers and the IPO managers are Abu Dhabi Islamic Bank, Citibank, Crédit Agricole, Emirates NBD Capital, First Abu Dhabi Bank, and HSBC, a document revealed on Friday explained.

The successful production of sukuk will help Egypt pay international bonds of five years with the value of $1.25 billion payable on the twenty first of February.

Egypt is seeking to collect around $1.5 billion by next week, by producing dollar dominated sukuk, this is the first sovereign sukuk production for the country.

Egypt aims to gather five billion dollars of sukuk production during the coming six months with an approval of an entry in the London Stock Market.