Arab Finance: Tasaheel, Egypt’s lender for small businesses and entrepreneurs and part of MNT-Halan, has issued an EGP 7 billion sukuk, the largest in the country’s non-bank financial institutions (NBFIs) sector, as per an emailed press release.

It is also the largest socially sustainable sukuk by a non-governmental entity in Africa.

The sukuk received an “A” credit rating from the Middle East Credit Rating and Investor Services (MERIS) and an “Excellent” (SQS1) sustainability score from Moody’s Rating Agency, reflecting compliance with the Sustainable Sukuk Principles set by the International Capital Market Association (ICMA).

Investor interest in the issuance was strong, with a subscription coverage ratio of 1.2 times.

With a five-year maturity period, the sukuk is structured as a Modaraba Sukuk and has been certified by the Central Shariah Committee at the Financial Regulatory Authority (FRA) and the Sukuk Company Shariah Committee, ensuring compliance with Islamic finance principles.

The funds raised will support Tasaheel’s plans to expand financial solutions for underserved businesses and individuals while strengthening its role in Egypt’s financial sector.

The issuance was conducted under the supervision of the FRA and was supported by financial and legal advisors, including CIB and CI Capital as financial advisors, Maatouk Bassiouny & Hennawy as legal advisors, and KPMG as transaction auditor.

The sukuk was issued by Alkan for Sukuk and underwritten by CIB, AAIB, El Baraka, and Banque du Caire, with additional participation from SAIB, ABC, FABMisr, Faisal Islamic Bank, and ADCB.

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