The Suez Canal Bank has successfully completed two sukuk issuances totaling EGP 5.8bn, both compliant with Islamic Sharia principles. The bank acted as the coverage guarantor and payment agent in both transactions, reinforcing its growing role in the Islamic finance market. These issuances align with the bank's strategic objective to diversify its financial offerings and strengthen its footprint in the Islamic investment space. The first issuance, valued at EGP 3bn, was structured as Mudarabah (profit-sharing) sukuk for Aman for Project Financing. The proceeds will be used to finance the company's portfolio of Sharia-compliant investments, particularly targeting the microfinance and small finance sectors—key pillars of Egypt's financial inclusion agenda and sustainable development efforts. The second issuance, worth EGP 2.8bn, was structured under the Musharakah (partnership) model and will support the financing of the "Bab Misr" urban development project. The initiative is spearheaded by Bab Misr for Urban Development, a subsidiary of Hassan Allam Construction. It marks the first Musharakah sukuk of its kind in Egypt, aimed at transforming the Upper Egypt Railway Station area—Egypt's largest rail hub—into a modern, mixed-use complex featuring residential, commercial, medical, and administrative facilities, along with parking and public services. Akef El Maghraby, CEO and Managing Director of Suez Canal Bank, said the successful completion of these sukuk reflects the bank's proactive approach to expanding its financial and investment services. "We provide a full suite of debt instrument services—from underwriting and coverage to advisory and structuring—tailored to meet the evolving financing needs of diverse sectors," he noted. El Maghraby added that the bank has increasingly played a pivotal role in Egypt's debt instruments market, participating in numerous high-impact issuances across sectors such as education, consumer and real estate finance, microfinance, urban development, and social development. "In 2024, we participated in 12 issuances totaling EGP 12.1bn. So far in 2025, we've been involved in four issuances worth EGP 7bn, taking on roles such as coverage guarantor, custodian, subscription recipient, and payment agent," he said. "This reflects both our expanding capabilities and the depth of expertise within our team." Looking ahead, the Suez Canal Bank aims to deepen its presence in Egypt's debt capital market, focusing on sectors with high growth potential. The bank's investment strategy emphasizes value creation and comprehensive financing solutions that support broader economic development.
