Egypt FRA greenlights $114mln Sharia-compliant sukuk issuances

Zawya

29-04-2025

Egypt's Financial Regulatory Authority (FRA) has approved two new Sharia-compliant sukuk (Islamic bond) issues with a combined value of EGP 5.8bn, as part of its efforts to diversify financing options.
FRA Chairperson Mohamed Farid announced that the total value of sukuk approved by the authority since the beginning of 2025 has reached EGP 12.8bn.
The recent approvals comprise two separate issuances. The first is an EGP 3bn Mudarabah (profit-sharing) sukuk issue by Bokra (formerly Rawasy for Securitization). These funds are intended to finance a project for Aman for Project Finance.
The second approval is for a Musharakah (partnership) sukuk issue, the first by Al Ahly Sukuk. This issuance will finance a project for Bab Misr for Urban Development, a subsidiary of the Hassan Allam Construction group.
Both sukuk issues will be offered through a private placement targeting financial institutions and financially solvent individuals.
Mudarabah and Musharakah sukuk are types of Islamic bonds provided for under Egypt's Capital Market Law No. 95 of 1992. Companies utilise these instruments to finance expansion projects, and their returns are typically variable depending on the specifics of each issuance.
Farid noted that the value of Sharia-compliant sukuk issues approved from the start of 2025 until now (EGP 12.8bn) matches the total value approved between the first such issuance in 2020 and the end of 2024 (also EGP 12.8bn). This brings the cumulative value of all approved sukuk issues since 2020 to EGP 25.7bn.
Farid added that the total value of sukuk offered in the capital market has reached EGP 25.7bn. He also mentioned that the FRA is currently reviewing several potential new issues.
The FRA stated that these approvals are part of its ongoing efforts to provide diverse financing and investment solutions catering to the needs of individuals and institutions for future expansions, aiming to contribute to economic activity. The authority highlighted its commitment to facilitating and expediting issuance procedures while ensuring the rights and balance of all parties involved and maintaining financial stability in the markets and non-banking financial institutions.