Cairo
Ministry of Finance signed the first conventional and Islamic financing facility, with a value of $ 2 billion.
The Ministry clarified in a statement that this financing comes with the aim of financing the state’s general budget and supporting the Egyptian economy, to contribute to maintaining its strong path in the face of prevailing fluctuations in global markets.
House of Representatives had approved this financing facility, and that Emirates NBD Capital Ltd., the investment banking arm of Emirates NBD and First Abu Dhabi Bank, were appointed as the joint global coordinators, the main authorized regulators, and IPO managers which will complete this transaction.
The statement pointed out that Emirates NBD Capital acted as a documentation bank, and First Abu Dhabi Bank as a global agent and an agent for facilitation and investment.
It added that the facility’s offering process has been launched by the IPO managers to select a group of Islamic and traditional financiers to participate in this public offering.
“Despite the difficult challenges that the market faced due to the repercussions of the ongoing coronavirus crisis, there was a great turnout, and the subscription coverage rate reached 1.75 times the value of the offering, so the Ministry of Finance increased the volume of financing from $ 1.5 billion to $ 2 billion, as shown,” it noted.
This turnout reflects the strong confidence of regional and international investors in the Egyptian economy and its stable credit rating, according to the statement. Minister of Finance¡ Mohamed Ma’it, emphasized that the keenness of regional and international banks to participate in this joint financing facility is evidence of the success of the Egyptian economic reform program.
“Egypt is constantly working to diversify its sources of financing by making use of regional and Islamic sources of financing, and that First Abu Dhabi Bank and Emirates NBD, as global joint coordinators and underwriting managers, have shown competence in the successful closing of the deal,” Ma’it stated.
Assistant Minister of Finance for Economic Affairs, Sherine El Sharkawy, said that this “facility” was closed with the participation of a diverse mix of regional and international investors, as the main authorized regulators and the offering managers joined: “Mashreq Bank, ABC Islamic Bank, Arab Banking Corporation, HSBC Middle East Limited, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.
—Courtesy: Egypt Today
