Tasaheel Completes Africa’s Largest Sukuk Issuance Worth EGP 7 Billion
Tasaheel, Egypt’s largest and fastest-growing lender for small businesses and entrepreneurs; and partof MNT-Halan, has successfully completed Egypt’s largest-ever Sukuk issuance in the non-bank financial institutions (NBFIs) sector. This pioneering EGP 7 billion Sukuk marks a major milestone, standing as the largest Social Sustainable issuance in Africa for a non-governmental entity.
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 reflects 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.
The funds raised from this historic Sukuk issuance will support Tasaheel’s strategic growth plan, focusing on expanding access to financial solutions for underserved businesses and individuals; which will further enable Tasaheel to enhance its positive impact on Egypt’s financial ecosystem.
The Sukuk issuance has a 5-year maturity period and isstructured as a Modaraba Sukuk. The issuance has been certified by the Central Shariah Committee at the FRA and the Sukuk Company Shariah Committee, ensuring full compliance with Islamic finance principles.
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.”
Islam Ayoub, Managing Director of Tasaheel, said "This Sukuk issuance is a major milestone not just for Tasaheel, but for the non-banking finance sector as a whole. 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."
This Sukuk issuance is a significant step for Egypt’s business finance sector, further cementing Tasaheel’s role in providing sustainable financial solutions, and advancing MNT-Halan’s mission of driving financial inclusion across the country.
Key regulatory supervision was provided by the Egyptian Financial Regulatory Authority (FRA). The transaction was supported by prominent financial and legal advisors, including CIB and CI Capital as financial advisors, Maatouk Bassiouny & Hennawy as legal advisors, and KPMG as transaction auditor. The Sukuk was issued by Alkan for Sukuk and underwritten byCIB, AAIB, El Baraka, and Banque du Caire, with additional participation from SAIB, ABC, FABMisr, Faisal Islamic Bank, and ADCB.
