Al Baraka Bank has joined a group of regional and local banks to provide the largest joint financing deal in Egypt that follows the principles of Islamic Sharia. The deal, worth about EGP 5.5bn, will benefit Giza Systems and VAS Integrated Solutions, two leading companies in the field of digital transformation.
The deal aims to refinance the existing facilities of the two companies on better terms and lower costs, as well as to support their growth, expansion and development in the region. The deal will also help them increase their project portfolio and offer integrated technological solutions in various sectors, such as communications, infrastructure, oil and gas, transportation, smart buildings, and manufacturing.
The deal is guaranteed by Solutions by STC, a Saudi company that specializes in enabling digital transformation in the Kingdom and the region. It is the first dual-structured deal in Egypt that uses both the Mudaraba and Murabaha forms of Islamic financing.
Hazem Hegazy, CEO and Vice Chairman of the Board of Directors of Al Baraka Bank, said: “Our participation in this deal confirms our firm commitment to meeting the needs of major institutions and supporting business growth to enhance innovative and sustainable financing solutions, in line with Islamic Sharia principles.”
He added: “This strategic partnership not only reflects our position as a major player in the Islamic finance sector, but also our continued keenness on contributing to economic development.”
The deal is managed by Abu Dhabi Islamic Bank – Egypt, which acts as the financing agent, guarantee agent, global investment agent, and account bank. Its investment arm, Abu Dhabi Islamic Capital Company, is the financial advisor and sole financing marketer.