Tuesday, May 28, 2013
DUBAI (Zawya Dow Jones)--Egypt is planning to sell an Islamic bond, or sukuk, early next year following the passage of a new sukuk law, according to a government debt prospectus.
Islamic authorities at Al Azhar have given preliminary approval to the law after it was passed by Egypt's parliament in March, and a sukuk issuance is expected at the beginning of 2014 in international and local markets, the prospectus for a new $12 billion government bond program says.
Egypt's economy is still reeling from its revolution over two years ago, and plans to upgrade infrastructure and alleviate poverty require large amounts of spending financed through debt sales. The Ministry of Finance is looking to use money raised through Islamic bonds to finance infrastructure and development projects, in addition to diversifying sources of funding and broadening its investor base, according to the prospectus.
Regional sukuk sales have picked up in recent years thanks to strong investor demand and favorable market conditions for issuers. About $137 billion of Islamic bonds were sold last year, according to a report from the International Islamic Financial Market, up from $92.4 billion in 2011.
Write to Asa Fitch at asa.fitch@dowjones.com
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(END) Dow Jones Newswires
28-05-13 1026GMT
