Al-Ahly Pharos concludes 1st Musharaka Sukuk issuance at EGP 2.8B

Updated 5/6/2025 12:04:00 PM

Arab Finance: Al-Ahly Pharos Investment Banking, the investment banking arm of the National Bank of Egypt (NBE), completed its first-ever Musharaka Sukuk issuance at a value of EGP 2.8 billion, according to an emailed press release.

Al-Ahly Pharos acted as a financial advisor, lead manager, book-runner, and underwriter for the transaction, which will finance Bab Masr project, established by Hassan Allam Construction-owned Bab Masr Development.

The offering received strong investor demand, achieving an oversubscription before closing the issuance.

This issuance, which will be utilized to finance a greenfield mixed-use real estate project, marks a significant milestone in the evolution of Egypt’s debt capital market.

It also secures to access the debt capital market, expanding the landscape of financing opportunities and innovative debt instruments.

Zulficar and Partners acted as the legal advisor for the transaction, while Baker Tilly served as the auditor.

Middle East for Credit Rating and Investors Service (MERIS) acted as the credit rating agency for the issuance. Meanwhile, ECG was the transaction independent engineer, whereas RSM served as the independent financial advisor.

Mohy-Eldin Abdin, Group CFO of Hassan Allam Holding, stated: “This Sukuk issuance marks a significant milestone in Hassan Allam Holding’s financing strategy.”

He added: “The strong participation of leading financial institutions, including National Bank of Egypt, and Suez Canal Bank as underwriters, with additional participation from ADCB, IDB, and SAIB, reflects strong investor confidence in both our vision and the broader potential of more diversified debt instruments.”

Bab Misr is a mixed-use development project that spans 100,000 square meters and includes 17 buildings dedicated to commercial, administrative, residential, medical, and garage spaces. Located in Mohandiseen, the project is developed by Hassan Allam Holding.