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Wednesday, 4 December 2019

Corporate sukuks to debut in coming weeks with USD 50 mn CIAF Leasing issuance bonds

DEBT WATCH- Corporate sukuks to debut in Egypt in the coming weeks? CIAF Leasing plans to issue Egypt’s first corporate sukuk in the coming weeks, Financial Regulatory Authority official Sayed Abd El Fadeel told Reuters. The aircraft leasing company will sell USD 50 mn in Islamic bonds, he said, adding that Abu Dhabi Islamic Bank is on board to manage the issuance. A second undisclosed company could also receive approval in the coming weeks to launch a USD 1 bn sukuk issuance, he said.

Talaat Moustafa Group is also getting ready to launch a EGP 4.5-5 bn sukuk program, sources told the press. The three-year program could begin as early as January with a first issuance of up to EGP 2 bn to finance one of the company’s real estate leasing projects, the sources said. The sources claimed that EFG Hermes is acting as lead managers for the issuance, while Baker McKenzie is assuming the role of a legal advisor.

All of this comes as companies are waking up to the potential of debt: The value of total securitized bond issuances has more than tripled this year to EGP 18 bn, up from EGP 5.3 bn last year, FRA head Mohamed Omran said at a press conference yesterday. Throw in the advent of short-term issuances and it’s hard not to ask: When will we start seeing people trading corporate paper?

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