Cairo: Egypt plans to issue $2 billion in international bonds by the end of FY2025/2026, which ends on 30 June 2026, Minister of Finance Ahmed Kouchouk announced on Thursday, February 5, 2026.
According to State Information Service Egypt, Kouchouk stated that the government aims to diversify its financing tools, reduce borrowing costs, attract new investors, extend debt maturities, and meet the country's financing needs more efficiently. These measures are intended to manage Egypt's debt at a lower cost and over a longer repayment period.
The minister mentioned that there is growing demand for Egypt's five-year bonds, along with interest from international investors, as yields on global bonds have declined by around four percent. Additionally, Egypt is planning to issue retail bonds for individual investors at an undisclosed date, as revealed by Kouchouk during the ninth edition of the Capital Markets Summit.
Kouchouk also highlighted other government plans, which include reducing the external debt of budget entities to around $1-2 billion annually in 2026 and decreasing overall debt in collaboration with the Central Bank of Egypt (CBE). A key priority is reducing the debt-to-GDP ratio to below 75 percent within three years, supported by improvements in macroeconomic indicators and increases in exports and domestic production.
International credit rating agency Fitch Ratings recently raised its outlook for Egypt's economic growth from 4.9 to 5.2 percent for FY2025/2026. Concurrently, the International Monetary Fund (IMF) revised its growth forecast for Egypt to 4.5 percent, up from 4.3 percent. During a recent meeting with CBE Governor Hassan Abdalla, IMF Managing Director Kristalina Georgieva praised Egypt for implementing a challenging reform program in recent years. However, she cautioned that global debt levels are rising rapidly, nearing 100 percent of global GDP, and noted that higher debt servicing costs are limiting investment in skills development.
The IMF board is expected to meet in the first quarter of 2026 to consider the $8 billion Extended Fund Facility (EFF) loan program and the first review under the $1.3 billion Resilience and Sustainability Facility (RSF) loan agreement.
In January 2025, Egypt issued a $2 billion international bond, its first since 2021, to help cover an estimated $10 billion financing gap for FY2024/2025. These bonds were issued in two tranches with five- and eight-year maturities, offering indicative yields of 9.25 percent and 10 percent, respectively. Furthermore, in November 2025, Egypt completed its first sovereign sukuk issuance for the domestic market, raising EGP 3 billion through the primary dealer system with a three-year maturity, providing Sharia-compliant investment options.