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Monday, 24 June 2019

Two companies express interest in issuing sukuk to FRA

Are we on the cusp of a sukuk issuance spree? Two unnamed companies partially owned by the government have expressed their interest in issuing shariah-compliant sukuk bonds to finance new projects this year, sources tell Al Mal. One issuance would be worth EGP 1 bn, while the value of the other one has yet to be decided. One of the companies is said to be planning to issue the sukuk itself, while the second company will carry out the issuance through Sarwa Capital. Both have signalled interest to the Financial Regulatory Authority (FRA), the newspaper reports.

Background: The FRA issued regulations governing sukuk in April. The regulations stipulate that the bond issuances be approved by a religious committee and issued through an independent body that monitors issuances. It also said issuances must be worth at least EGP 50 mn. We reported yesterday that Abu Dhabi Islamic Bank’s investment banking unit Adib Capital Egypt is planning to request regulatory approval from the FRA for a sukuk issuance it is managing for an unnamed local company.

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