CAIRO - 20 September 2022: The Financial Regulatory Authority (FRA) has approved the issuance of sharia-compliant speculative sukuks worth LE 2 billion for a period of 84 months starting from the day following the closing date for subscription in the sukuk, in favor of Sarwa Sukuk Company.
This issuance represents the fourth issue to finance the project of the beneficiary company (Contact Finance Company) (the beneficiary company / Mudarib).
The company is expected to direct the proceeds of the issuance to finance the purchase of cars owned by its customers or clients of its subsidiaries and sister companies that engage in the same activity, bringing the total issued sukuks during the current year to LE 5.251 billion.
For his part, Chairman of the FRA, Mohamed Farid, said that the authority is keen to issue all necessary decisions and procedures to develop and develop non-banking financial markets and instruments while maintaining their stability, and enhancing the transparency of the activities in which they are practiced.
Farid added that the latest issuance of Islamic Sharia-compliant sukuk complements the authority’s efforts to develop the capital market by providing various financing solutions and products that meet the needs of various economic entities to develop and grow their businesses, including Sharia-compliant sukuk, which add to the capital market a new investment product in line with the desire of some investors to invest in investment products that comply with the provisions of Islamic Sharia.
The Chairman of the FRA stated that with the completion of the approval of the issuance of Mudaraba sukuk for Sarwa Sukuk Company, the number of sukuk issuances since the addition of the sukuk regulations in 2018 to date will reach six sukuk issuances, with a total amount of LE 12.851 billion, which vary in Islamic financing formulas between Mudaraba or lease to own or share.
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