Strengthening Egypt’s energy security through a USD 100 million ICIEC-backed murabaha facility

ICIEC has been approached to provide a Bank Master Policy (BMP) cover of up to USD 100 million in support of a Murabaha syndicated facility arranged by the International Islamic Trade Finance Corporation (ITFC) in favour of the Egyptian General Petroleum Corporation (EGPC). The facility benefits from a sovereign guarantee issued by the Ministry of Finance of Egypt, reinforcing its credit profile and risk mitigation structure.

Structured on a best-efforts basis of USD 200 million, the syndicated facility is scalable in the event of oversubscription. ITFC is acting as Mudharib, Bookrunner, and Mandated Lead Arranger, contributing USD 35 million, while participating banks are expected to provide up to USD 165 million. ICIEC’s proposed BMP cover will insure participating banks against non-payment risk by the Government of Egypt, arising from commercial or political causes.

The proceeds of the facility will finance the import of crude oil, refined petroleum products, and liquefied natural gas (LNG) for EGPC. This financing plays a critical role in supporting Egypt’s energy needs at a time of production constraints, ensuring continuity in fuel supply for power generation, industrial operations, and transportation.

The oil and gas sector accounts for approximately 25% of Egypt’s GDP, underscoring its strategic importance to economic growth, fiscal revenues, and export performance. By enabling uninterrupted access to essential energy inputs, the transaction contributes directly to economic stability, industrial productivity, and employment generation, while supporting broader social stability.

From a development perspective, the transaction aligns with multiple Sustainable Development Goals (SDGs). It supports SDG 7 (Affordable and Clean Energy) by strengthening energy security and reliable power generation, SDG 8 (Decent Work and Economic Growth) through sustained industrial activity and job creation, and SDG 9 (Industry, Innovation, and Infrastructure) by maintaining and modernising critical energy infrastructure. It also advances SDG 17 (Partnerships for the Goals) by reinforcing international trade and financial cooperation and contributes indirectly to SDG 1 and SDG 10 (No Poverty and Reduced Inequalities) by mitigating energy-related economic shocks that disproportionately affect vulnerable populations. The transaction further promotes Islamic finance, leveraging a Shariah-compliant Murabaha structure in line with the IsDB Group’s objective to use Islamic finance instruments as effective tools for development across Member States.

Through this engagement, ICIEC continues to play a catalytic role in mobilising private sector participation, mitigating cross-border risks, and supporting strategic sectors that underpin sustainable economic growth in its Member States.