Abu Dhabi Islamic Bank Egypt and its investment arm, Abu Dhabi Islamic Capital, have arranged a joint financing deal that complies with the principles of Islamic Sharia for Giza Systems and its subsidiary VAS Integrated Solutions. The deal is worth EGP 5.5bn, making it the largest joint Islamic financing deal in Egypt. It is backed by the Arabian Internet and Communications Services Company, which enables digital transformation in the Kingdom of Saudi Arabia and the region.
The deal aims to refinance existing facilities with better terms and lower financing costs, to support the growth, expansion, and development of the business of Solutions’ subsidiaries in the region.
The deal represents the first dual-structured financing compatible with Islamic Sharia in Egypt in Mudaraba and Murabaha forms.
Several regional banks participated in the financing, along with a group of major banks operating in Egypt, namely Ahli United Bank in Bahrain and Egypt, ABC Bank in Bahrain and Egypt, Abu Dhabi Commercial Bank in the UAE and Egypt, and Abu Dhabi Islamic Bank – Egypt, as initial main arrangers.
Credit Agricole Egypt, Emirates NBD Egypt, and Arab Bank Egypt also acted as lead arrangers. Al Baraka Bank Egypt participated in the financing as a participating bank.
Abu Dhabi Islamic Bank – Egypt led the financing arrangement as the financing agent, security agent, global investment agent, and account bank, while Abu Dhabi Islamic Capital Company was the financial advisor and sole financing marketer.
The deal aims to support the expansions of the two companies, open new markets, increase their project portfolio, and expand integrated technological solutions in various fields.
Mohamed Ali, CEO and Managing Director of Abu Dhabi Islamic Bank Egypt, said that managing the largest joint Islamic financing deal in Egypt reflects the bank’s ability to provide innovative financing solutions to customers. He also said that it confirms the confidence of major organizations participating in the deal. “This enhances our role as a constant supporter of the Egyptian economy in general, and the information technology sector in particular,” he noted.
Hatem El-Demerdash, CEO and Managing Director of Abu Dhabi Islamic Capital expressed his happiness with the company’s leadership of this deal as the sole financial advisor and sole financing marketer. He said that this enhances ADI Capital’s local and regional position for syndicated financing that complies with Sharia principles.
Giza Systems, the leading company in enabling digital transformation and systems integration in the Middle East and Africa region, designs technical solutions for several industries, such as communications, utilities, oil and gas, transportation, and other sectors, to serve a growing customer base in more than 25 countries.
The legal consultations regarding the financing were provided by Baker McKenzie and Sarie-Eldin & Partners as advisors to the participating banks, while Addleshaw Goddard and Sharkawy and Sarhan served as legal advisors to Giza Systems and VAS Integrated Solutions.