Egypt set to issue first corporate sukuk within weeks, official says

Ahram Online , Tuesday 3 Dec 2019

A file photo of Egypt's Financial Regulatory authority in Cairo (Photo: Al-Ahram)

Egypt is set to issue its first corporate sukuk, or Islamic bonds, in the coming weeks, an official at the Financial Regulatory Authority (FRA) said on Tuesday.

FRA department head Sayed Abdel-Fadil told Reuters that CIAF Leasing, an aircraft leasing company, will issue sukuk worth $50 million, becoming the first corporation in Egypt to issue the bonds. 

A second company, a contractor, will also issue sukuk worth more than EGP 1 billion ($62.27 million) within weeks, he added, without providing more details.

The official's statements come a few weeks after FRA head Mohamed Omran said that the authority is considering the approval of the country’s first sukuk issuance next year, worth EGP 750 million ($46.5 million). 

Over the past few years, Egypt has repeatedly announced its intention to issue its first sukuk, but the plan has not yet been realised.

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