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Sunday, 9 February 2020

CIAF board postpones Egypt’s first corporate sukuk issuance

DEBT WATCH- CIAF board postpones Egypt’s first corporate sukuk issuance: Aircraft leasing company CIAF Leasing’s board of directors decided to postpone its planned sukuk issuance due to concerns over the terms of the issuance, the local press reports, citing sources in the know. Board members reportedly raised objections over the inclusion of a required dividend distribution following the issuance and a separate stipulation that would have barred any changeup in the company’s board structure until the bonds mature.

Background: The USD 50 mn Islamic bond issuance, which was set to be Egypt’s first corporate sukuk offering, was originally expected to go to market by the end of December. The company said at the time it would divide the issuance into a USD 7 mn tranche sold locally and a USD 43 mn tranche sold locally and to foreign investors. The first tranche will carry a tenor of three years, while the second will carry a tenor of 5-8 years.

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