• Tasaheel completes an EGP 7 billion Modaraba sukuk issuance, aiming to strengthen its role in Egypt’s non-bank financial sector.
• With the funds, it will expand financial access for underserved businesses, supporting Tasaheel’s growth and Egypt’s financial ecosystem.
•  The sukuk issuance is a step for Egypt’s business finance sector and supports Tasaheel’s role in providing sustainable financial solutions.

Sukuk Issuance

What is the deal? Tasaheel has completed an EGP 7 billion (USD 138M)  sukuk issuance in the non-bank financial institutions (NBFIs) sector.

Tasaheel is an Egyptian lender for small businesses and entrepreneurs and a subsidiary of MNT-Halan. 

The Sukuk issuance has a 5-year maturity period and is structured as a Modaraba Sukuk. The issuance has been certified by the Central Shariah Committee at the FRA and the Sukuk Company Shariah Committee. This is in order to ensure compliance with Islamic finance principles.

“By raising capital in this way, we are advancing our mission to promote financial inclusion and empower small business owners who are the backbone of the Egyptian economy. This transaction will enable Tasaheel to make a meaningful difference in the lives of many.”

Islam Ayoub, Managing Director of Tasaheel

What is a sukuk? It is an Islamic or Shariah-compliant financial certificate, it often represents ownership in an underlying asset, investment or project. A Modaraba sukuk is an investment partnership where one party provides capital and another manages the investment  

Credit Rating The Sukuk received an “A” credit rating from the Middle East Credit Rating and Investor Services (MERIS), along with an “Excellent” (SQS1) sustainability score from Moody’s Rating Agency. This is in alignment with Tasaheel’s commitment to the Sustainable Sukuk Principles of the International Capital Market Association (ICMA).

 The issuance attracted strong investor demand, with a subscription coverage ratio of 1.2 times, underscoring its appeal and significance in the financial market.

Tasaheel

What will they do with the funds? With the funding, Tasaheel aims to support its growth plan focusing on expanding access to financial solutions for underserved businesses and individuals. With this, it aims to enhance its impact on Egypt’s financial ecosystem.

Mounir Nakhla, Founder & CEO of MNT-Halan, commented “Tasaheel is tapping into new funding channels and diversifying its base to further fuel loan book growth. By securing innovative tailored financing solutions, we’re extending our reach to more businesses and continuing to make an impact in Egypt and beyond.”

Why does this matter?  The sukuk issuance is a step for Egypt’s business finance sector and supports Tasaheel’s role in providing sustainable financial solutions. This step also supports MNT-Halan’s mission of driving financial inclusion across the country.

Regulatory Supervision 

• Key regulatory supervision was provided by the Egyptian Financial Regulatory Authority (FRA). 
• The transaction was supported by financial and legal advisors, including CIB and CI Capital as financial advisors. As well as, Maatouk Bassiouny & Hennawy as legal advisors, and KPMG as transaction auditor.
• The Sukuk was issued by Alkan for Sukuk and underwritten by CIB, AAIB, El Baraka, and Banque du Caire. As well as, participation from SAIB, ABC, FABMisr, Faisal Islamic Bank, and ADCB.