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EgyptTasaheel Secures $138M Sukuk Issuance to Expand Financial Inclusion in Egypt
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Tasaheel, a subsidiary of MNT-Halan, issued an EGP 7 billion ($138M) Modaraba Sukuk.
The Sukuk has a 5-year maturity period and complies with Islamic finance principles.
The issuance received an "A" credit rating from MERIS and a top sustainability score from Moody’s.
The funds will support Tasaheel’s expansion in Egypt’s non-bank financial sector.
The issuance was oversubscribed, reflecting strong investor demand.
Tasaheel, an Egyptian microfinance lender under MNT-Halan, has secured a major financial boost through a $138 million (EGP 7 billion) Sukuk issuance. This move aims to strengthen its role in Egypt’s non-bank financial sector by expanding access to credit for small businesses and entrepreneurs.
The issuance, structured as a Modaraba Sukuk, complies with Islamic finance principles and has been certified by both the Central Shariah Committee at the Financial Regulatory Authority (FRA) and the Sukuk Company Shariah Committee. It carries a five-year maturity period and received an "A" credit rating from the Middle East Credit Rating and Investor Services (MERIS). Additionally, it earned an "Excellent" (SQS1) sustainability score from Moody’s Rating Agency, aligning with the Sustainable Sukuk Principles of the International Capital Market Association (ICMA).
Islam Ayoub, Managing Director of Tasaheel, emphasized the company's commitment to financial inclusion, stating:
"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."
The Sukuk issuance saw strong investor interest, with a subscription coverage ratio of 1.2 times, highlighting confidence in Tasaheel’s growth strategy. With these funds, the company plans to expand its financial services, particularly targeting underserved businesses that lack access to traditional banking.
Mounir Nakhla, Founder & CEO of MNT-Halan, noted that Tasaheel is diversifying its funding sources to drive financial inclusion across Egypt and beyond. He stated:
"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."
Regulatory Supervision & Underwriting
The issuance was regulated by the Egyptian Financial Regulatory Authority (FRA) and involved several key financial institutions. CIB and CI Capital acted as financial advisors, with Maatouk Bassiouny & Hennawy serving as legal advisors and KPMG as the transaction auditor.
The Sukuk was issued by Alkan for Sukuk and underwritten by CIB, AAIB, El Baraka, and Banque du Caire, alongside contributions from SAIB, ABC, FABMisr, Faisal Islamic Bank, and ADCB.
This milestone reflects Tasaheel’s growing influence in Egypt’s non-bank financial sector, reinforcing its role in providing sustainable financial solutions to underserved communities.
