Egypt's FRA expected to approve Sarwa Capital’s sukuk issuance

Sarwa will issue $160mln worth sukuk for the benefit of Contact Finance

  
An employee counts Egyptian pounds at a foreign exchange office in central Cairo, Egypt, March 20, 2019. Image used for illustrative purpose.

An employee counts Egyptian pounds at a foreign exchange office in central Cairo, Egypt, March 20, 2019. Image used for illustrative purpose.

REUTERS/Mohamed Abd El Ghany

The Financial Regulatory Authority (FRA) is expected to approve, on Saturday, the Sarwa Capital’s sukuk issuance for the benefit of Contact Finance, informed sources told Daily News Egypt.

The anticipated move follows the FRA Sharia Supervisory Committee’s approval of the sukuk’s compliance with Islamic Sharia last Thursday.

Sarwa will issue EGP 2.5bn worth sukuk for the benefit of Contact Finance, comprising over 25m sukuk with a nominal value of EGP 100 per unit, in a private placement for financial institutions and high net worth individuals.

The maximum period of the Sukuk is 84 months, starting from the day following the closing of the subscription.

The sukuk holders will be entitled to a variable return that will start to be disbursed from the month following the closing of the subscription to the issuance.

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