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Wednesday, 25 May 2022

The sukuk market has been quiet in 1H 2022 + other things we’re keeping an eye on this morning

Al Ahly Sabbour Developments could take a sukuk issuance to market, Al Borsa quotes Managing Director Ahmed Sabbour as saying. Industry sources tell us the plans are still at an early stage, and company officials did not reply to requests for comment when we reached out. The developer is also in talks with the National Bank of Egypt for an EGP 850 mn facility to finance its Keeva project in Sixth of October

It’s been another quiet year for sukuk so far: Palm Hills Developments in March took its maiden EGP 3.25 bn sukuk issuance to market in our first corporate sukuk sale of the year. The sale came after a very quiet 2021 for sharia-compliant debt issuances, which by our count witnessed a single EGP 2.5 bn sale from Contact Financial Holding (formerly Sarwa Capital).

Will we see any more issuances in 1H? Wadi Degla Developments’s EGP 2 bn sukuk sale and Amer Group’s EGP 1.1 bn offering — both quarterbacked by Contact — had been slated to take place during the first half of the year, Contact Financial’s CFO Ayman Elsawy told us in January.

Other things we’re keeping an eye on this morning:

  • France’s Thales has completed the new Tanta train station and two other stops along the railway linking Asyut and Nag Hammadi. (Statement)
  • Yemen confirmed that Egypt has approved direct flights between Cairo and Sanaa under a UN-brokered truce that last month brought fighting between the Saudi-led coalition and Houthi rebels. (Twitter)
  • Local delivery app Gooo has closed a pre-seed funding round from angel investors, Al Borsa reported. The company, which says it wants to raise USD 5 mn in unspecified future rounds, did not disclose how much it raised.

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