The Abu Dhabi Islamic Bank-Egypt’s (ADIB Egypt) board has approved the decision to proceed with setting up a sukuk company.
In a statement to the Egyptian Exchange, on Saturday, ADIB Egypt said the company will be established with an authorised capital of EGP 100m and issued capital of EGP 10m.
An official source told Daily News Egypt that the company aims to implement the offering of sukuk before the end of 2021, with a value exceeding EGP 1bn. The bank will own 98% of the to-be-established sukuk company.
In the first quarter (Q1) of 2021, ADIB Egypt logged consolidated net profits of EGP 332.22m, up from EGP 230.35m in Q1 of 2020, including minority shareholders’ rights.
Three requests for sukuk offerings are expected to be submitted after the Eid Al-Adha holidays, out of a total of five companies that are currently studying such offerings.
Hassan Allam, Palm Hills Developments, Wadi Degla, and Amer Group, in addition to an agricultural reclamation company, are considering offering sukuk during the coming period.
Sources suggest that the offerings most likely to be implemented are by Palm Hills and Wadi Degla.