Cairo, February 24th , 2025- CIB, Egypt’s leading private-sector bank, has announced the successful closure of Tasaheel for Financing (S.A.E)’s groundbreaking EGP 7 billion Mudaraba sukuk, issued by Alkan Finance Sukuk. This marks the largest non-sovereign social sustainable sukuk issuance in Africa and the first of its kind in the Egyptian market. Furthermore, it is the first non-sovereign sukuk to be issued in the Egyptian market in accordance with AAOFI standards.
CIB played a pivotal role in this unprecedented transaction as the financial advisor, lead arranger, manager, and promoter. The bank also served as the payment agent and underwriter, reinforcing its leadership in the financial market.
The sukuk received a distinguished ‘A’ credit rating from MERIS (Middle East Rating & Investor Service) and an “excellent” sustainability score under the SQS1 framework from Moody’s Ratings, reflecting Tasaheel’s strong alignment with the social sukuk principles of the International Capital Market Association (ICMA). The issuance experienced a strong demand from investors, achieving an oversubscription of 1.2 x, a testament to its appeal and significance in the market.
Commenting on the achievement, Mr. Amr El-Ganainy, Deputy CEO & Executive Board Member at CIB, said, “This landmark sukuk transaction underscores our unwavering commitment to innovation and sustainable finance in Egypt. By partnering with Tasaheel, we are reshaping the future of structured and Islamic finance, breaking barriers to promote financial inclusion, and addressing critical market challenges. CIB’s leadership in launching the first social sukuk demonstrates our dedication to delivering impactful, transformative solutions to empower businesses and uplift communities.”
Celebrating the successful closure, Ms. Heba Abdel Latif, Head of Financial Institutions & Debt Capital Markets at CIB, stated, “CIB has played an instrumental role in leading this landmark transaction. The success of Tasaheel’s social sukuk not only solidifies our position as a trusted financial partner but also highlights the confidence that investors have in Egypt’s microfinance sector. This milestone reflects the potential for sustainable financing to drive positive societal and economic change.”
Ms. Gilan El Siginy, Debt Capital Markets Sector Head at CIB, added, “Our partnership with Tasaheel is a testament to CIB’s relentless pursuit of excellence in serving the capital markets. Since our relationship with the company began in 2021, we have worked closely to address the market’s need for innovative and sustainable financing instruments, evidenced by our successful closure of the 1st Social Securitization in the Egyptian market in December 2023 and now the closure of this landmark Sukuk transaction, setting a new benchmark for growth and collaboration.”
Commercial International Bank (CIB), Arab African International Bank (AAIB), Banque Du Caire (BDC), Al Baraka Bank Egypt were the underwriters of this transaction, while First Abu Dhabi Bank Misr (FAB Misr), Abu Dhabi Commercial Bank (ADCB), Société Arabe Internationale de Banque (SAIB), and Arab Banking Corporation (ABC) were participants.
The Shariaa Sub-Committee for the issuance consisted of Dr. Abbas Shoman, Dr. Mohamed El-Beltagy, and Dr. Abdul Salam Lasheen.
CI Capital acted as co-advisor and co-arranger, Alkan Sukuk Finance acted as the issuer, Matouk Bassiouny & Hennawy served as the legal advisor. KPMG Hazem Hassan acted as the auditor for the transaction, Elite Financial Services acted as the independent advisor, and Arab African Investment Management (AAIM) acted as the investment manager.