Egypt has raised 80 billion yen ($500 million) through a private placement of sustainability–linked Samurai bonds, with tenors of five and 10 years, as part of the government’s debt strategy which aims to diversify borrowing sources and lower debt servicing costs.
The shorter tranche is worth roughly $350 million.
While the five-year tranche is rated AA+ by Japan Credit Rating Agency (JCR), and the 10–year tranche is rated AA, both bonds are slated for an upgrade to AAA once they enter the interest payment guarantee period. The African Development Bank (AfDB) guaranteed the issuance.
The deal marks Cairo’s third Samurai bond issuance since its debut in Japan's debt market in 2022, after a similarly sized 80 billion–yen sale in 2023.
The bonds cap Egypt's international market borrowing for FY2025/26 at $4 billion, following $3.5 billion in earlier deals. The Finance Ministry plans to maintain its presence in global markets next fiscal year with $3–4 billion in international offerings under a $40 billion issuance programme.
(Writing by Ahmad Mousa; editing by Daniel Luiz)
