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Thursday, 24 December 2020

Sukuk boomlet continues

EGX-listed private education outfit CIRA is planning a EGP 600 mn sukuk issuance to fund its expansion plans in school-level and higher education, as well as pay off some of its loans, the company’s board said in a regulatory filing (pdf) approving the issuance. The sukuk will be backed by four K-12 schools and carry a tenor of 84 months. The offering will be open to private institutional and high-net-worth investors. CIRA has set 27 December 2020 as a target closing date (pdf).

Background: This would be the third issuance of corporate sukuk in Egypt, following Talaat Moustafa Group’s EGP 2 bn offering in April and Sarwa Capital’s EGP 2.5 bn sale in November. Amer Group is also said to be in the market for Sharia compliant debt.

Advisors: EFG Hermes Investment Banking is sole financial advisor, lead arranger and bookrunner for the transaction, while EFG Hermes Sukuk Co. will be the issuer for the EGP-denominated sukuk. Ahli United Bank, Suez Canal Bank and Banque du Caire are underwriters. Prime Capital as independent financial advisor. Zulficar & Partners is providing counsel, and Meris will provide the credit rating.

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