Contact Financials arm close to issue Sukuk program for Palm Hills

ArabFinance: Sarwa Sukuk Company is getting ready to offer a multi-issuance sukuk program worth EGP 3 billion for Palm Hills Development Company (PHDC) in the first quarter (Q1) of 2022, Al Borsa Newspaper reported, citing CFO of Contact Financial Holding (CNFN) Ayman Elsawy.

The company has signed an agreement with Banque Misr and its investment arm Misr Capital, under which they will act as the promoter, underwriter, and payment agent for Palm Hills anticipated Sukuk issuance, Elsawy said.

This offering will represent the companys first issuance in 2022, he added.

Middle East Rating and Investors Service (MERIS) is close to complete studying of the financing structure for the Sukuk as well as its rating, the CFO added, pointing out that this study will be submitted to the Financial Regulatory Authority (FRA) once all final approvals for the offering are received.

Sarwa Sukuk will act as the bookrunner and the general promoter of the issuance, while Misr capital and Banque Misr will serve as underwriter and payment agents on the transaction.

Meanwhile, Alieldean Weshahi and Partners (ALC) will serve as the legal counsel of the offering and KPMG Hazem Hassan will act as the financial audit.

Contact Financial Holding, formerly Sarwa Capital, is a non-bank financial services provider, changing the way people and businesses access finance and insurance.

Palm Hills is an Egypt-based company that focuses on real estate investment in the new cities and urban communities, land reclamation and cultivation, and other activities associated with the Companys operations.