Egypt’s First Sukuk Offering Bought by Egyptian Banks and a Saudi Based Investor

A Saudi Arabian investor and four Egyptian Banks have bought the Sukuk issued by Arab Company for Projects and Urban Development, a subsidiary of Talaat Moustafa Group Holding (TMG).

According to local media reports, EGP 1.45 billion out of the EGP 2 billion issuance was purchased by both Banque du Caire and Banque Misr, while Suez Canal Bank, the Egyptian Gulf Bank, and a Saudi investor purchased EGP 395 million, EGP 100 million, and EGP 55 million, respectively. This five-year Sukuk will be tradable on the Egyptian Exchange (EGX) and is non-convertible.

This is the first Sukuk issuance in the Egyptian market and the Egyptian Financial Group Hermes Holding (EFG Hermes) acted as the...