Sarwa Capital applies for sukuk issuer license: Consumer- and structured-finance player Sarwa Capital has submitted a request to the Financial Regulatory Authority (FRA) for a license to issue sukuk (sharia-compliant bonds), Al Mal reports. Sarwa would become the first Egyptian player to hold a sukuk license if its application is approved. The FRA had set the regulatory framework for licensing and establishing special-purpose vehicles to issue sukuk last month. Under the framework, issuers are permitted to invest only in sectors compliant with sharia law and their activities will be limited to investing on behalf of sukuk holders who are paid on a profit / loss basis rather than a fixed coupon rate. Sukuks were introduced through recently passed amendments to the Capital Markets Act that will also see the launch of short selling, futures, and green bonds, among other instruments.

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