Egypt: time for a sukuk
The Egyptian government reportedly plans to raise up to $1bn by June through sukuk sales, with one for domestic investors and one for foreign investors. The cabinet has finished a draft law to pave the way for the issuance, which would be debated in parliament this week. The Egyptian sukuk is expected to trade with a yield of 6 to 6.5 per cent, however, the market conditions between now and the eventual issuance could change significantly. Moreover, any issuance in unlikely prior to the settlement of a deal with the IMF on the stalled $4.8bn loan package. Negotiations with the IMF will re-open in early March.