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Tuesday, 15 March 2022

Palm Hills approves EGP 3.25 bn sukuk sale + UE Finance closes Upper Egypt’s first-ever securitization

Palm Hills Developments’ general assembly approves EGP 3.25 bn sukuk issuance: Shareholders voting at the company’s ordinary general assembly approved the issuance of shariah-compliant bonds worth EGP 3.25 bn at a meeting on Sunday, after its board of directors greenlit the sale in February, according to a disclosure to the bourse (pdf). The sukuk issuance, which will be managed by Contact Financial Holdings’ (formerly Sarwa Capital) sukuk arm, will finance the developer’s Badya project. The sale could go ahead by the end of March, Sarwa Promoting and Underwriting head Ayman Elsawy told us in January, making it our first corporate sukuk issuance in 2022.

UE Finance has closed a securitized bond issuance worth almost EGP 1.2 bn, according to a statement (pdf) by legal advisor Dreny & Partners. The offering was backed by a portfolio of financial leasing contracts and is the first securitization transaction in Upper Egypt, the statement said.

Advisors: CIB acted as lead arranger and financial advisor, while CIB, Arab African International Bank, Ahli United Bank, the National Bank of Egypt, Banque du Caire, and Suez Canal Bank acted as joint underwriters of the issuance. Dreny & Partners were the legal advisors on the transaction.

OTHER DEBT NEWS- BM Lease is considering plans to securitize at least EGP 1 bn of its portfolio during 4Q2022.

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