Unlisted agricultural company in Egypt to issue sukuk in January 2021

Published 29 Nov,2020 via Daily News Egypt - An unlisted agricultural reclamation company is preparing required documents to issue sukuk in 2021, according to Sayed Abdel-Fadil, Head of Central Administration for Corporate Finance at the Financial Regulatory Authority (FRA).

Abdel-Fadil added that the company is expected to complete its papers and submit a formal request to the authority to implement the offering during January 2021.

He said that the agricultural reclamation company is not listed on the Egyptian Exchange (EGX), which he considered a positive indicator. He noted that it reflects how far awareness has spread on the culture of financing through the sukuk mechanism, and is not limited only to large, listed companies.

Abdel Fadil pointed out that the introduction of the new sukuk will coincide with Amer Group’s preparations to launch its own sukuk offering at the beginning of 2021. The company is currently undertaking a credit rating process for the offering to determine its final value, which is expected to mix Ijarah and Mudaraba as the first hybrid issuance in Egypt.

Last week, the Egyptian market witnessed a sukuk issuance by Sarwa Capital, worth a value of EGP 2.5bn. The market is currently awaiting the issuance of other sukuk offerings by the Cairo Investment and Real Estate Development, in the form of Ijarah before the end of this year, with a value of EGP 600m. Abdel Fadil said that sukuk issuances in 2021 are set to exceed EGP 10bn.

© 2020 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info)

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.