The Talaat Moustafa Group (TMG) aims to launch its first sukuk programme, worth EGP 2bn, on the Egyptian market by the end of next week, informed sources told Daily News Egypt. The prospective sukuk is currently under review and is expected to soon gain the Financial Regulatory Authority’s (FRA) approval.
The sources added that the offer was promoted with several commitments that successfully secure the coverage of the offering.
They added that TMG’s sukuk will be in the leasing system and with a fixed return. This guarantees both the project’s success and profits. Accordingly, the offering will be encouraging and attractive to investors.
TMG is targeting sales in the fiscal year (FY) 2019/20 similar to those in FY19, of EGP 20.4bn. These targets fall in line with the trend across the real estate sector this year, with most companies targeting flat growth in FY20. The company’s EGP 17.46 per share valuation assumes a FY20 sales forecast of EGP 19.3bn.
Sales in the fourth quarter (4Q) of FY19 surged 96.7% year-over-year (y-o-y) and 110.7% quarter-over-quarter (q-o-q) to EGP 5.9bn, bringing FY19 sales to EGP 20.4bn, 15.0% lower than the company’s sales target for that year. This is down 4.2% y-o-y, mainly due to FY19 having included the EGP 1.0bn sale of four schools, compared to the EGP 0.3bn sale of one school in FY19.
