Bokra completed an EGP 3 bn sharia-compliant mudarabah sukuk issuance for Raya Holding’s Aman For Microfinance, the local fintech said in a statement (pdf).

The details: The sukuk has a tenor of 84 months starting from the closing date, with proceeds earmarked to finance Aman Microfinance’s sharia-compliant lending portfolio. The issuance carries a +BBB rating from Middle East Rating and Investors Service (Meris).

The buyers: Several major financial institutions took part in the transaction, including Suez Canal Bank, Industrial Development Bank, Arab African International Bank, Al Baraka Bank, and Al Ahly Pharos as underwriters.

We may be in line for some sukuk news from Bokra soon, with the founder and CEO Ayman Elsawy saying in February that the startup is planning to issue EGP 20 bn in sukuk across five offerings this year.

What they said: “This issuance marks a key milestone in strengthening our Islamic finance offering and expanding our ability to support entrepreneurs and SMEs, contributing meaningfully to sustainable economic development,” Aman for Financial Services CEO Hazem Moghazi said.

ADVISORS- Bokra led and managed the issuance through its subsidiaries. ALC Alieldean Weshahi & Partners provided legal advisory, while Moore Egypt served as the independent financial advisor, and Baker Tilly handled auditing.

SOUND SMART- A mudarabah sukuk is based on a profit-sharing agreement where the investors provide the capital and the issuer manages the project. Investors receive returns based on the profits generated — not fixed returns.

Tags: