Egypt targets to raise $2.5bln from government IPO program in FY2024/25

PHOTO

Arab Finance: Egypt expects to raise between $2 billion and $2.5 billion from the resumption of the state’s initial public offering (IPO) program during the current fiscal year (FY) 2024/2025, Minister of Finance Ahmed Kouchouk revealed in an interview with Asharq Business.

The government's program aims to exit from seven sectors, including pharmaceuticals, chemicals, and construction, reduce its investments in seven sectors, including power plants, and create opportunities for private sector investments in four sectors.

Since March 2023, Egypt has raised up to $3.1 billion so far from government offerings, following $2.5 billion from divestments from state assets in 2022.

The minister added that Egypt is considering issuing green bonds and sukuk in EGP in the local market to address the budget deficit.

However, Kouchouk did not specify why the focus is on the local market rather than the global market.

Egypt previously sold the region's first sovereign green bonds worth $750 million in September 2020, which was five times oversubscribed.

In February 2023, it issued its first sovereign sukuk worth $1.5 billion for a three-year period.