Egypt to issue int’l sukuk in Q1 2020: Omran

Egypt to issue international sukuk before the end of the first quarter of  2020, according to the Chairman of the Financial Regulatory Authority.

He added that FRA is studying the possibility of issuing Sukuk finances for two companies operating in the Egyptian market.

Omran added during a conference announcing the issuance of the first short-term securitization for the payment of Premium Card that the authority gets 1 of 1,000 of the public issuance and 0.5 of 1,000 of the private issuance, and these amounts are cut in half in such a step.

On the other hand, FRA has issued a guide on the trading of sukuk – a newly developed financial tool in the capital market – in line with recent legislative amendments.

The new amendments of the Capital Market Law no. 17 of 2018, were based on three axes, including short-term securitization, green bonds, and Sukuk.

Sukuk play an important role in bankrolling companies, authorities and legal persons, Omran said, adding that the new tool should help create value added for the national economy.

He added that FRA has approved two short-term bond issuance with total value of 2.5 billion Egyptian pounds.

Omran added on the sidelines of the press conference, that the authority seeks to promote such markets, especially short-term debt instruments, as it seeks to finance the capital cycle as a whole, whether through free capital or public capital, which is clear in the law of leasing, finance and collection, explaining that the duration of trading of such instruments starts from 7 days and a maximum of two years.