HSBC, Citi among banks to manage Egypt’s first Islamic bonds

Egypt has named six international banks, including Citigroup and HSBC Holdings, to manage its first sale of sovereign Islamic bonds, people familiar with the decision told Bloomberg on Thursday.

The North African country looks to diversify funding sources and ease the burden on its economy.

Abu Dhabi Islamic Bank (ADIB), Crédit Agricole, Emirates NBD, and First Abu Dhabi Bank (FAB) were also selected to help the government sell a sukuk of about $2 billion, the sources added.

The issuance could take place in the second quarter of the year, added the sources, who asked not to be identified because they weren’t authorized yet to speak to the media.

Egypt first revealed its plans to sell sovereign Islamic bonds four years ago, but decided to move ahead instead with other international issuances to help cover financing needs. In 2021, it raised $6.8 billion through Eurobond issuances, and is planning its first Japanese yen-denominated Samurai bond in the current financial year ending this June.