Hassan Allam Construction taps local sukuk market in first-ever issuance: Our friends at Hassan Allam Construction closed an EGP 2.8 bn musharaka sukuk issuance, marking their debut into the debt capital market, according to a press release (pdf). Proceeds from the debt sale will go towards financing one of Hassan Allam Construction’s Bab Misr project.

Demand ran hot: The offering saw strong demand and closed oversubscribed. The National Bank of Egypt and Suez Canal Bank were underwriters, with additional participation from Abu Dhabi Commercial Bank, Industrial Development Bank, and Saib.

The details: The issuance was structured as a musharaka sukuk, giving investors joint ownership in the underlying project — here Bab Misr — with returns tied to the project’s actual performance rather than a fixed rate.

ADVISORS- Al Ahly Pharos quarterbacked the transaction as lead manager, financial advisor, bookrunner and underwriter. Zulficar and Partners provided legal counsel, with Baker Tilly serving as auditor. Meanwhile, MERIS acted as the credit rating agency, ECG as independent engineer, and RSM as the independent financial advisor.

About Bab Misr: Bab Misr is a 100k sqm greenfield mixed-use project located in Cairo. The development includes 17 buildings for commercial, residential, administrative, medical, and parking use. It is owned by Hassan Allam Construction’s wholly-owned subsidiary BabMisrDevelopment and falls under a broader redevelopment plan for the area around the Upper Egypt railway station.

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