Egypt’s ECHEM planning EGP 1 bn sukuk issuance
DEBT WATCH- ECHEM planning EGP 1 bn sukuk issuance: The Egyptian Petrochemicals Holding Company (ECHEM) is considering issuing EGP 1 bn-worth of sukuk to help finance its subsidiaries’ ongoing projects, Al Shorouk reported, citing company sources. The issuance would make ECHEM the first state-owned company to issue sukuk. According to the sources, ECHEM is currently seeking approval from the Financial Regulatory Authority (FRA) for the issuance and is also in talks with unnamed banks to lead the issuance.
Background: Four Egyptian companies are already gearing up to issue a combined EGP 5 bn in sukuk on the EGX, head of the FRA’s in insurance department Sayed Abdelfadil said in January. Consumer and structured-finance player Sarwa Capital was granted Egypt’s first sukuk license earlier this year, and EFG Hermes has requested a license from the FRA to set up a sukuk arm specialized in issuing the sharia-compliant bonds. Banque Misr and Abu Dhabi Islamic Bank are also expected to receive their sukuk licenses within the next two months.