Al Baraka Bank Egypt Participates in the Largest Sustainable Social Sukuk Issuance in Egypt and Africa Worth EGP 7 Billion for Tasaheel for Microfinance

Cairo, February 2025

Al Baraka Bank Egypt announced its participation in the largest sustainable social sukuk issuance in Egypt and Africa, valued at EGP 7 billion for Tasaheel for Microfinance, with a share of EGP 450 million. The bank guaranteed the coverage of this issuance through Alkan Finance Sukuk. This issuance represents the largest in the Egyptian and African markets and is the first non-sovereign sukuk in Egypt that complies with the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). This milestone underscores Al Baraka Bank Egypt's commitment to providing innovative, Sharia-compliant financial solutions and reinforces the bank’s leadership in supporting sustainable social financing.

The sukuk received an (A) credit rating from the Middle East Ratings and Investor Services (MERIS) and an "Excellent" sustainability quality score (SQS1) from Moody’s Rating, reflecting Tasaheel for Microfinance’s adherence to the Social Bond Principles issued by the International Capital Market Association (ICMA). The issuance attracted significant investor demand, achieving a coverage ratio of 1.2 times, further affirming its attractiveness and significance in the financial market.

The transaction featured the participation of several prominent financial and advisory institutions. The Commercial International Bank (CIB) acted as the financial advisor, lead arranger, issuance manager, Bookrunner, payment agent, and underwriter. Additionally, Al Baraka Bank Egypt, CIB, Banque du Caire, and Arab African International Bank served as underwriters. The subscription also included First Abu Dhabi Bank Egypt, Abu Dhabi Commercial Bank, SAIB bank, and the Arab Banking Corporation Egypt.

Commenting on this milestone, Mr. Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank Egypt, stated: "This is the largest issuance in the country and represents a transformational shift in the Islamic and structured finance landscape, not only in Egypt but also across Africa. It is also the result of continuous collaboration among all parties involved, reflecting the investors' confidence in this issuance and their commitment to diversifying corporate financing sources through Sharia-compliant products."

Mr. Hegazy further added, "Our participation in this issuance aligns with our strategy to support sustainable economic development in Egypt. Al Baraka Bank Egypt is committed to developing Sharia-compliant financing and investment solutions while providing both conventional and non-conventional financial products to companies operating in the Egyptian market. This supports various economic sectors in line with the state's developmental goals and contributes to advancing national progress and economic growth."