Egypt is returning to the debt markets this year with a USD-denominated benchmark fixed rate 144A/Reg S senior unsecured dual-tranche sukuk offering with long three-year and seven-year tenors.

The sovereign, rated B (stable) by Fitch / B- (stable) by S&P / Caa1 (positive) by Moody’s, has mandated Abu Dhabi Islamic Bank, Citi, Dubai Islamic Bank, First Abu Dhabi Bank and HSBC as Joint Lead Managers and Joint Bookrunners to arrange a global investor call and a series of fixed income investor calls commencing Monday.

The Trust Certificates are expected to be rated B by Fitch and B- by S&P.

In August, Ahmed Kouchouk, Egypt’s Minister of Finance, had revealed plans to issue $2 billion in Islamic bonds as part of the country’s efforts to diversify financial activity and stimulate the economy.

In January, the Egyptian government issued a $2 billion dual tranche bond, split across a $1.25 billion five-year senior unsecured Reg S bond with a yield of 8.625%, and a $750 million eight-year bond with a yield of 9.45%.