Egypt Nears $500 Million Samurai Bond Issuance

Egypt is close to completing the issuance of yen-denominated Samurai bonds worth the equivalent of $500 million, marking its first return to this type of debt market in three years as it seeks to broaden external financing channels.

Egypt’s Foreign Minister Badr Abdel Aty said the government is finalizing the remaining steps required to launch the bond sale, according to comments made during an official visit to Japan.

“We are completing the final procedures,” Abdel Aty said, adding that discussions in Tokyo also focused on financial cooperation, budget support, and broader investment opportunities.

The planned issuance would represent Egypt’s third Samurai bond offering, following previous sales in 2022 and 2023. The latest deal comes as Cairo continues efforts to diversify its funding base and tap new investor pools beyond traditional dollar and euro markets.

The government is expected to raise the equivalent of $500 million in Japanese yen, targeting institutional investors in Japan’s domestic bond market.

The African Development Bank previously announced it would provide a partial guarantee for the issuance, a move expected to enhance investor confidence and reduce borrowing costs.

Such guarantees typically improve credit perception and help emerging market issuers access deeper pools of capital in highly rated domestic markets such as Japan.

Egypt has been actively working to diversify its external financing sources in recent years, including sovereign bond issuances in international markets and increased engagement with multilateral lenders.