Egypt - Commercial International Bank (CIB) is finalizing a sukuk deal worth EGP 6bn for Tasaheel, a subsidiary of MNT Halan, which is expected to be completed by the beginning of the second quarter of this year, sources told Daily News Egypt.

The sources said that the sukuk, which are Islamic bonds that comply with the principles of Islamic finance, will be issued in the form of Mudarabah, a partnership contract where one party provides capital and the other provides expertise. The deal aims to finance the company’s growth by providing financing solutions. They added that the company is preparing the issuance file and will submit it to the Financial Regulatory Authority (FRA) for approval.

Sukuks can be issued by companies or governmental, sovereign, or quasi-sovereign entities, as long as they do not involve interest, debt trading, or uncertainty in transactions.

In January of last year, CIB ended its role as financial advisor, exclusive issuance manager, custodian, and underwriter in issuing social sustainability securitization bonds worth EGP 3.806bn for Tasaheel.

This issuance was part of a multiple program with a total value of EGP 13bn over three years after the company received the approval of FRA.

The social sustainability securitization bonds, issued by Tasaheel, marked a milestone in Egypt’s commitment to sustainable development and responsible finance, by combining innovation in securitization with sustainability criteria. These bonds offered new opportunities for investors who wanted to align their investment portfolios with environmental and social goals.

Tasaheel also provides financing programs for Egyptian citizens who are excluded from the banking sector, such as rapid digital financing, microenterprises, and SMEs.

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Shaimaa Raafat