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Wednesday, 30 December 2020

CIRA pulls sukuk trigger

CIRA closed its EGP 600 mn sukuk issuance — the first for Egypt’s education sector — yesterday, according to a statement (pdf). The leading private-sector education outfit sold ijara sukuk that will be traded on the EGX. The sharia-compliant bonds will carry a tenor of seven years and will not be convertible to shares. The Financial Regulatory Authority had green lit the issuance one day earlier.

The issuance was 2.3x oversubscribed, allowing the subscription period to open and close on the same day, the statement notes. The bond sale and CIRA both earned an A rating with a stable outlook from the Middle East Ratings and Investor Services (Meris).

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

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