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Contact Financial Holding closes second Sukuk issuance worth EGP 2.5bn

Contact Financial Holding closes second Sukuk issuance worth EGP 2.5bn
This brings Contact's total Sukuk issuances to EGP 5 billion

Cairo - MubasherContact Financial Holding has closed its second Sukuk issuance worth EGP 2.5 billion by its Sukuk arm, Sarwa Sukuk Company.

The Shariah-compliant Mudaraba Sukuk, which has a seven-year tenor, received a high credit rating of A- by Middle East Ratings and Investors Service (MERIS), Contact Financial Holding said in a bourse disclosure on Tuesday. 

The proceeds will be directed to finance further expansion of Contact Credit and its subsidiaries. 

This issue marks Contact's second transaction, bringing its total Sukuk issuances to EGP 5 billion.

Sarwa Promotion and Underwriting served as lead manager and arranger on the transaction, while Misr Capital was the underwriter alongside Banque Misr.

The issue was co-underwritten by Commercial International Bank - Egypt (CIB) and Ahli United Bank. Alieldean Weshahi & Partners (ALC) acted as the legal advisor, while Elite Consulting Group acted as the independent financial consultant on the transaction.

It is noteworthy to mention that Sarwa Sukuk Company was the first to receive the Sukuk licence in Egypt by the Financial Regularity Authority (FRA) in July 2019.