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Moody's assigns (P)B3 to Egypt's Sukuk programme

Moody's assigns (P)B3 to Egypt's Sukuk programme
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Cairo – Mubasher: Moody's Investors Service has assigned a (P)B3 rating to Egypt’s proposed $5 billion trust certificate issuance programme, according to a press release.

The prgramme is managed by the Financial Company for Sovereign Taskeek, a joint stock firm that is wholly owned by the Egyptian Ministry of Finance.

Moody's noted that the trust certificates issued under the programme will create direct, unconditional, and unsubordinated obligations of Egypt’s government.

It also indicated that the payment obligations represented by the securities, which will be offered by the financial firm, equal all of the government's current as well as future senior unsecured external debt.

Meanwhile, the company will use the proceeds of the sukuk issuance to acquire the usufruct rights to eligible real estate assets. The amounts subsequently received by the government in consideration for the transaction will endorse investment and development projects included in the state’s economic and social development plan.

The (P)B3 rating mirrors Egypt’s B3 rating that was announced on 7 February 2023. Moody's underlined that the same factors and considerations apply, as the rating might be upgraded in case signs of a positive transformation were found.