The Arab Republic of Egypt has successfully issued JPY 80 billion (approximately USD 500 million) in sustainability samurai bonds, supported by a partial credit guarantee from the African Development Bank Group. The issuance comprises two tranches: a 5-year tranche rated AA+ and a 10-year tranche rated AA allowing Egypt to further diversify its funding profile while extending the maturity of its debt portfolio.
This transaction represents another important milestone in the country's strategy to diversify the currency composition of its external debt and mobilise long-term financing to support sustainable development priorities under Egypt's Sovereign Sustainable Financing Framework.
Proceeds from the issuance will be allocated exclusively to eligible sustainable expenditures under the framework, including investments in healthcare, education, renewable energy, energy efficiency, climate adaptation, water and wastewater management, digital infrastructure and inclusive socioeconomic development.
The transactions comes at a time when heightened geopolitical uncertainty and increased volatility in international capital markets have reinforced the importance of diversified financing sources and access to long-term capital. The African Development Bank's AAA credit rating and partial credit guarantee played a catalytic role in facilitating access to long-term financing on competitive terms, supporting Egypt's objective of extending its debt maturity profile.
Egypt's Minister of Finance, Dr Ahmed Kouchouk, said: "We deeply value the African Development Bank's continued partnership and its confidence in Egypt's economic reform agenda. This partial credit guarantee helps Egypt further diversify its financing through innovative sustainable financing instruments. Under Egypt's Sovereign Sustainable Financing Framework, the Sustainability Samurai Bond will channel long-term resources to priority investments in human capital, sustainable infrastructure, climate action and inclusive growth, in line with Egypt Vision 2030."
"In today's volatile global environment, the catalytic role of multilateral development banks is more important than ever," Kouchouk added. "Their support helps emerging and developing economies maintain access to international capital markets, mobilise private investment and finance sustainable development priorities. We value the African Development Bank's partnership in advancing these shared objectives and look forward to further expanding our successful cooperation."
The transaction builds on Egypt's track record as a pioneer in sovereign sustainable financing in Africa. Egypt was the first African sovereign issuer to access the Chinese Panda Bond market and has established a comprehensive Sovereign Sustainable Financing Framework aligned with international best practices for identifying, allocating, monitoring and reporting sustainable expenditures.
Ahmed Attout, Director of the African Development Bank's Financial Sector Development Department, said: "This operation demonstrates how the Bank's partial credit guarantee can help regional member countries mobilise private capital and access long-dated financing on competitive terms. By leveraging the Bank's AAA credit rating, the transaction supports Egypt's efforts to diversify the currency composition of its external debt while mobilising resources for sustainable and inclusive growth."
"At a time of heightened market volatility, the Bank's support also plays an important counter-cyclical role by helping preserve Asian market access for the Arab Republic of Egypt," Attout added.
The operation is aligned with the African Development Bank's Ten-Year Strategy and supports the Bank's broader efforts to deepen capital markets, mobilise private investment, and expand access to sustainable financing across Africa.
