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Egypt raises $500 million in AfDB-backed sustainability samurai bonds
Egypt has successfully issued JPY 80 billion (approximately $500 million) in sustainability samurai bonds, backed by a partial credit guarantee from the African Development Bank (AfDB), marking another step in the country’s strategy to diversify its external financing and fund long-term sustainable development.
The issuance comprises two tranches—a five-year tranche rated AA+ and a 10-year tranche rated AA—helping Egypt broaden the currency composition of its external debt while extending the maturity profile of its debt portfolio.
Financing sustainable development:
The proceeds will be allocated exclusively to eligible projects under Egypt’s Sovereign Sustainable Financing Framework, supporting investments in healthcare, education, renewable energy, energy efficiency, climate adaptation, water and wastewater management, digital infrastructure, and inclusive socioeconomic development.
The transaction comes amid heightened geopolitical uncertainty and increased volatility in global capital markets, underscoring the importance of diversified funding sources and access to long-term financing.
AfDB’s AAA credit rating and partial credit guarantee played a key role in facilitating the issuance, enabling Egypt to secure long-term financing on competitive terms while advancing its debt management strategy.
Minister highlights sustainable finance strategy:
Finance Minister Ahmed Kouchouk described the transaction as another milestone in Egypt’s sustainable financing agenda.
“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,” Kouchouk said.
He added “In today’s volatile global environment, the catalytic role of multilateral development banks is more important than ever. Their support helps emerging and developing economies maintain access to international capital markets, mobilize 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.”
Building on sustainable finance leadership:
The latest bonds issuance builds on Egypt’s position as a pioneer in sovereign sustainable finance in Africa. The country was the first African sovereign to access China’s Panda Bond market and has established a Sovereign Sustainable Financing Framework aligned with international best practices for identifying, allocating, monitoring, and reporting sustainable expenditures.
AfDB: Guarantee expanded market access:
Ahmed Attout, Director of the AfDB’s Financial Sector Development Department, said the operation demonstrates how the Bank’s guarantee instruments can help countries attract private capital while improving financing conditions.
“This operation demonstrates how the Bank’s partial credit guarantee can help regional member countries mobilize 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 mobilizing resources for sustainable and inclusive growth,” Attout said.
He added: “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.”
Supporting long-term capital mobilization:
The issuance of the samurai bonds aligns with the African Development Bank’s Ten-Year Strategy, which aims to deepen capital markets, mobilize private investment, and expand access to sustainable financing across Africa, while reinforcing Egypt’s efforts to secure diversified, long-term funding for its development priorities.
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