Sarwa Capital’s EGP 2.5 bn Contact sukuk issuance to launch in 2 weeks

DEBT WATCH- Sarwa Capital will take a EGP 2.5 bn sukuk issuance to market over the coming two weeks on behalf of its subsidiary Contact, the local press reports. The single-tranche issuance is awaiting final approval by the Financial Regulatory Authority and is part of Sarwa Capital’s strategy to diversify its sources of funding. The sukuk will carry a seven-year tenor. MERIS ratings is providing the credit rating for the issuance, while ALC Alieldean Weshahi & Partners will act as legal counsel and KPMG Hazem Hassan will be the financial auditor. Contact was the first company to be granted a consumer financing license earlier this year along with Raya Holding’s Aman.