The Egyptian government is planning to issue a $1bn sukuk by the end of the current financial year, according to a statement from the Ministry for Public Treasury.

“As part of the financial year 2017/2018 budget, the government seeks to issue a $1bn sukuk after passing the Islamic bond issuance law,” said the statement.

Cairo launched a triple-tranche bond to raise $4bn earlier this year. This bond was twice the size of the funding target given when Cairo started investor meetings in mid-January.

The new senior unsecured five-, 10- and 30-year bonds are issued under the Egypt’s Global Medium-Term Note programme. Egypt is paying investors 6.125 per cent for $1.75bn note maturing on 31 January 2022. The $1bn 10-year tranche offers 7.5 per cent, while the 30-year $1.25bn issue offers 8.5 per cent interest.

Egypt’s economy has been struggling in the past few years with the government desperate to find way to plug the finance gap left behind declining tourism and Suez Canal revenues.

The country has been looking to raise funds through a variety of sources to kick-start its economy and fund the development projects, which were delayed due to acute dollar shortage.

The central bank in November broke away the dollar peg and floated Egyptian pound which it hopes will alleviate the currency crisis it has faced over the past few years. The country has also agreed a $12bn loan programme from the International Monetary Fund (IMF) to support plans for sweeping economic reforms.