Four banks, Saudi investor buy Sukuk issued by Talaat Moustafa’s unit

This is the first Sukuk issuance in the Egyptian market

  
Image used for illustrative purpose. American dollar and Saudi Riyal on the wooden.

Image used for illustrative purpose. American dollar and Saudi Riyal on the wooden.

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Cairo –  Four banks and a Saudi investor have participated in covering the Sukuk issuance issued by Talaat Moustafa Group Holding’s subsidiary Arab Company for Projects and Urban Development.

The Egyptian Financial Group Hermes Holding (EFG Hermes) acted as the financial advisor of the EGP 2 billion Islamic Sharia-compliant bond issue.

This is the first Sukuk issuance in the Egyptian market.

Both Banque du Caire and Banque Misr purchased a total of EGP 1.45 billion, while Suez Canal Bank, the Egyptian Gulf Bank (EG Bank), and a Saudi investor bought EGP 395 million, EGP 100 million, and EGP 55 million, respectively, officials said.

On 8 April, EFG Hermes received the Financial Regulatory Authority’s (FRA) approval on the first Sukuk issuance in the local market.

The five-year issuance will be tradable on the Egyptian Exchange (EGX) and is non-convertible to shares.

The Islamic bonds received an ‘A+’ rating by Middle East Ratings and Investors Service (MERIS).

Source: Mubasher Exclusive

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