Islamic Finance

Egypt's Contact Financial announces closure of second sukuk issuance

Published 27 Jul,2021 via Daily News Egypt - Contact Financial Holding has announced the successful closure of its second sukuk issuance of EGP 2.5bn by its subsidiary, Sarwa Sukuk Company.

The issue is an Islamic Sharia compliant seven-year Mudaraba Sukuk, and received a high credit rating of A- by the Middle East Ratings and Investors Service (MERIS). The proceeds will be used to further expand Contact Credit and its affiliate companies.

This issue is the second transaction which brings the total Sukuk issues of Contact Financial to EGP 5bn. It underlines the group’s strong financial position and its ability to diversify its funding sources to capture growth opportunities and solidifies its strategic position in developing innovative financing structures in the Egyptian debt capital market.

Contact has always been a pioneer in offering innovative financial solutions, as well as being a leading private issuer of corporate debt instruments in Egypt since introducing the first securitisation bond in 2005.

This transaction is the result of a combined effort from reputable banks, financial institutions, and the Financial Regulatory Authority (FRA), which showed strong support during the process.

It is worth mentioning that the Sarwa Sukuk Company was the first company in Egypt to obtain the Sukuk licence from the FRA in July 2019.

The issue closed with strong demand from a wide range of investors reflecting Contact Financial Holding’s strong track record in the debt market.

Sarwa Promotion and Underwriting, a subsidiary of the company, acted as lead manager and arranger on the transaction. Misr Capital acted as underwriters alongside Banque Misr. The issue was co-underwritten by the Commercial International Bank (CIB) and Ahli United Bank (AUB).

Alieldean Weshahi & Partners (ALC) acted as the legal adviser, while Elite Consulting Group acted as the independent financial consultant on the transaction.

© 2021 Daily News Egypt. Provided by SyndiGate Media Inc. (


DISCLAIMER: This content is provided to us “as is” and unedited by an external third party provider. We cannot attest to or guarantee the accuracy of information provided in this article from the external third party provider. We do not endorse any views or opinions included in this article. 


Author Profile Image
Daily News Egypt