Contact Financial announces closure of 2nd sukuk issuance of $160mln

Contact Financial announces closure of 2nd sukuk issuance of $160mln

Contact Financial Holding has announced the successful closure of its second sukuk issuance of EGP 2.5bn by its subsidiary, Sarwa Sukuk Company. The issue is an Islamic Sharia compliant seven-year Mudaraba Sukuk, and received a high credit rating of A- by the Middle East Ratings and Investors Service (MERIS). The proceeds will be used to further expand Contact Credit and its affiliate companies. This issue is the second transaction which brings the total Sukuk issues of Contact Financial to EGP 5bn. It underlines the group's strong financial position and its ability to diversify its funding sources to capture growth opportunities and solidifies its strategic position in developing innovative financing structures in the Egyptian debt capital market. Contact has always been a pioneer in offering innovative financial solutions, as well as being a leading private issuer of corporate debt instruments in Egypt since introducing the first securitisation bond in 2005. This transaction is the result of a combined effort from reputable banks, financial institutions, and the Financial Regulatory Authority (FRA), which showed strong support during the process. It is worth mentioning that the Sarwa Sukuk Company was the first company in Egypt to obtain the Sukuk licence from the FRA in