The bid-to-cover ratio of Talaat Mostafa Group’s (TMG) EGP 2bn worth Sukuk offering reached 2.5, which reflects investors’ great interest in the Sukuk market, informed sources told Daily News Egypt.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each Egyptian pound worth of securities being sold.
EFG Hermes acts as the sole financial advisor, coordinator, sole promoter, and underwriter of the deal. It is also the issuing company.
The Financial Regulatory Authority (FRA) had earlier approved the first issuance of Ijara Sukuk in the Egyptian capital market for the TMG-affiliated Arab Company for Projects and Urban Development.
The Ijara Sukuk is compliant with Islamic Sharia, tradable, and non-convertible.
The Sukuk will be offered in a private placement and listed on the Egyptian Exchange (EGX) for 57 months starting from the date of the issuance until the end of 2024, at a nominal value of EGP 100 apiece.
The Arab Company for Projects and Urban Development (as the beneficiary company) will receive the proceeds of the offering. This will be in exchange for selling the commercial centre it owns in the Madinaty compound to EFG Hermes.
FRA Chairperson Mohamed Omran said the prospects that were approved include offering 100% of the Sukuk to financial institutions and to individuals with expertise and financial solvency.
He stressed that Sukuk is of great importance in financing companies, public bodies, and legal persons, in addition to what they represent as financial tools for investors. It is projected that they will deepen the financial market and create added value for the national economy, which represents a real beginning for putting Egypt on the global Sukuk map.