Contact to complete sukuk issuance worth EGP 2bn this month

Fatma Salah
2 Min Read

Contact Financial Holding is planning to complete its fourth sukuk issuance, worth EGP 2bn, within this month as part of a Sharia-compliant multi-issuance programme.

The company’s CEO, Said Zater, told Daily News Egypt that the issuance file will be submitted to the Financial Regulatory Authority soon, to finalize the issuance before the month ends.

Zater said that the issuance proceeds will be used to finance the company’s expansion in consumer finance and to provide new financing for customers, due to the high demand for customer financing.

This will be the first sukuk issuance in the current year after no issuances took place in 2023 because of the high-interest rates.

Tharwa Securitization is the issuance manager, and ALC Al-Washahi Law Office is the legal advisor.

There are several securitization companies in the Egyptian market, such as Tharwat for Financial Securities, EFG Hermes, National Securities, ADIB Securities, GB Capital, and Baraka Securities.

The Financial Regulatory Authority estimated on Sunday that the sukuk demand in the current year will reach 10 billion pounds, and predicted four to five issuances during the year.

There is a growing interest in sukuk issuances, as shown by the companies’ inquiries and requests, especially with the expected approval of non-rated sukuk, which requires being asset-backed to protect the sukuk holders.

Share This Article
Leave a comment