Al Ahly Pharos closes landmark EGP 2.8bn Musharaka Sukuk for Bab Masr Development

Daily News Egypt

06-05-2025

Al Ahly Pharos Investment Banking, the investment banking arm of the National Bank of Egypt (NBE), has announced the successful closure of Al Ahly Sukuk Company's inaugural Musharaka Sukuk issuance, valued at EGP 2.8bn. Acting as financial advisor, lead manager, bookrunner, and underwriter, Al Ahly Pharos played a central role in this landmark transaction, which attracted strong investor demand and was oversubscribed prior to closing.
The proceeds will fund the Bab Masr project, a greenfield mixed-use real estate development by Bab Masr Development S.A.E., a fully owned subsidiary of Hassan Allam Construction S.A.E. The project is part of a strategic development surrounding the new Upper Egypt railway station in Mohandiseen, Egypt's largest rail hub, which integrates with Cairo Metro Line 3, the monorail, and the BRT system. Spanning 100,000 square meters, Bab Masr will include 17 buildings comprising commercial, administrative, residential, medical, and parking facilities.
This transaction marks a series of 'firsts': it is Al Ahly Sukuk's debut in the Sukuk market, the first Musharaka Sukuk of its kind for the issuer, and a milestone in Hassan Allam Holding's financing strategy. It also represents a significant step forward in diversifying Egypt's debt capital markets and demonstrates the rising interest in Sharia-compliant financing tools.
Ahmed Heidar, CEO and Managing Director of Al Ahly Pharos Investment Banking Group, stated: 'This transaction is a strong testament to the depth and strength of Al Ahly Pharos' advisory platform. It reinforces our strategic vision to drive innovation and broaden accessibility within Egypt's capital markets across DCM, ECM, and M&A. As more corporates turn to alternative financing tools, we remain committed to leading the evolution of capital market instruments in alignment with NBE Group's vision for an integrated financial services platform.'
Heidar also extended his gratitude to all involved: 'I would like to sincerely thank our exceptional team for their tireless efforts and our client, Hassan Allam Holding, for their trust and ongoing partnership. This transaction reflects the strength of our relationship and shared commitment to growth. We're also deeply grateful to the Sharia Supervisory Committee for their innovative input, and to the Financial Regulatory Authority (FRA) for their continued support and forward-looking stance, which are critical in expanding Egypt's capital market landscape.'
Mohy-Eldin Abdin, Group CFO of Hassan Allam Holding, commented: 'This Sukuk issuance marks a significant milestone in Hassan Allam Holding's financing strategy. The strong participation of leading financial institutions—including National Bank of Egypt and Suez Canal Bank as underwriters, and further support from ADCB, IDB, and SAIB—reflects investor confidence in our vision and the broader potential of diversified debt instruments. We are proud to have partnered with Al Ahly Pharos and a strong syndicate of advisors on this pioneering transaction.'
Amir Sherif, Managing Director and Head of Debt Capital Markets at Al Ahly Pharos, added: 'This transaction represents a critical milestone—not only as our first Musharaka Sukuk issuance, but as a tangible step toward realizing our vision for Egypt's debt capital markets. At Al Ahly Pharos, we're committed to delivering tailored financial solutions, both conventional and non-conventional, that address our clients' evolving needs. Sukuk is just one component of a much broader aspiration to develop a dynamic, resilient, and diversified financial ecosystem.'
He continued: 'I am incredibly proud of our Debt Capital Markets team. In just three years, they have successfully closed nearly EGP 100bn in structured and diversified transactions—an achievement made possible by their dedication, expertise, and client-centric approach.'
Sherif concluded with appreciation for the collective effort: 'I extend sincere thanks to all transaction parties for their dedication and close collaboration. Most importantly, we are deeply grateful to Hassan Allam Holding for their strategic partnership and efforts in bringing this Sukuk to market. We also thank the FRA for their indispensable role in facilitating such progress and shaping the future of Egypt's capital markets.'
Key advisory and transaction support was provided by Zulficar & Partners as legal counsel, Baker Tilly as transaction auditor, MERIS (Middle East for Credit Rating and Investors Service) as the credit rating agency, ECG as the independent engineer, and RSM as the independent financial advisor.