The Commercial International Bank (CIB) has successfully completed an EGP 7bn non-sovereign Sukuk issuance for “Tasaheel” for Finance, through Alkan Securities. It is the first non-sovereign issuance of its kind.
The issuance is the largest of its kind in Africa and the first in the Egyptian market. It is also the first non-sovereign Sukuk in Egypt to comply with the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOFI), reflecting CIB’s commitment to providing innovative and Sharia-compliant financial solutions.
CIB played a central role in the transaction, acting as financial advisor, lead arranger, lead manager, and promoter, as well as payment agent and underwriter, which reinforces its position in the Egyptian financial market.
The Sukuk received an “A” credit rating from Middle East Ratings and Investors Service (MERIS) and an “Excellent” sustainability grade (SQS1) from Moody’s Ratings, reflecting Tasaheel for Finance’s commitment to the Social Sukuk Principles issued by the International Capital Market Association (ICMA).
The issuance was met with strong investor demand, with a subscription coverage ratio of 1.2 times, confirming its attractiveness and importance in the financial market.
Amr El Ganainy, Deputy CEO and Executive Board Member of CIB, said: “This issuance represents a milestone in the path of sustainable finance in Egypt, as we continue our commitment to financial innovation and promoting financial inclusion. Through this partnership with Tasaheel, we are reshaping Islamic and structured finance, and providing financial solutions that support sustainable development and serve local communities.”
Heba Abdellatif, Head of Financial Institutions at CIB, said: “The success of this issuance reflects the great confidence that CIB enjoys in the market, and confirms its leadership in developing innovative financial instruments that support the microfinance sector in Egypt, and contributes to achieving a positive economic and social impact.”
Gilan El Siginy, Head of Debt Capital Market at CIB, stated: “Our cooperation with Tasaheel reflects our continued commitment to supporting the Egyptian capital market. Since the start of our relationship with the company in 2021, we have worked to provide sustainable financing solutions that meet the needs of the market, starting with the closing of the first social securitisation in Egypt in December 2023, up to this historic issuance, which enhances the standards of growth and cooperation in the financial market.”
Several banks acted as underwriters for the issuance, including CIB, Arab African International Bank, Banque Misr, and Al Baraka Bank Egypt, along with First Abu Dhabi Bank Egypt, Abu Dhabi Commercial Bank, Arab Banking Corporation, and Arab Investment Bank. First Abu Dhabi Bank Egypt, Abu Dhabi Commercial Bank, Arab Banking Corporation, and Arab Investment Bank also participated in the issuance.
The Sharia Supervisory Committee, consisting of Abbas Shoman, Mohamed El-Beltagy, and Abdel Salam Lasheen, reviewed and approved the compliance of the Sukuk with Sharia standards.
The advisory and support parties for the transaction included CI Capital as co-advisor and co-arranger, Arab African International Bank as co-advisor and co-arranger, Alkan Securities as the issuer, Matouk Bassiouny & Hennawy as legal advisor, KPMG Hazem Hassan as auditor, Elite Financial Services as independent advisor, and Arab African Investment Management as investment manager.
Through this issuance, CIB reinforces its position as a leading banking institution in supporting sustainable finance and paves the way for further financial innovations that contribute to strengthening financial inclusion and economic development in Egypt and the region.
