EFG Hermes, the leading financial services corporation in Frontier Emerging Markets (FEM), announced today that it has successfully concluded an EGP 600 million Sukuk issuance for Cairo for Investment and Real Estate Development (CIRA), one of the largest private educational groups in Egypt.

The Shariaa-compliant Sukuk will be tradeable on the EGX, subject to early redemption at the option of the borrower, and non-convertible to shares with a tenor of 7 years. Both CIRA and the Sukuk received an A rating and a stable outlook by the Middle East Ratings and Investor Services (MERIS).

Mostafa Gad, co-head of investment banking at EFG Hermes commented, “We are glad to conclude the year with another debt capital market transaction, coming in as the tenth deal in 2020. I am particularly proud of the team as their efforts continue to drive the growth of our DCM franchise across various industries.”

CIRA’s notable Sukuk issuance, based on an Ijarah structure, is considered the first Sukuk issuance in the Egyptian education sector. Having been covered 2.3 times, it has generated substantial interest that allowed the subscription period to open and close on the same day.

EFG Hermes has acted as sole financial advisor, sole global coordinator, sole lead arranger, and sole bookrunner; while EFG Hermes Sukuk S.A.E. acted as the originator/issuer. Four banks were appointed as underwriters, namely Ahli United Bank, Banque du Caire (BdC), National Bank of Egypt (NBE), and Suez Canal Bank.

“We highly value our continued partnership with CIRA, and are pleased to have advised the company on its first Sukuk issuance only two years after the successful conclusion of its initial public offering on the EGX in October 2018. This is a testament to our consistent commitment to our clients on both equity and debt fronts, which allows us to maintain sustainable relationships and build a strong foundation to achieve mutual short- and long-term successes,” concluded Gad.