Media Avenue, in cooperation with the Association of Fixed Income Investors and Exporters, will hold a virtual roundtable entitled “Competitive Advantages of Sukuk”, on 14 December, on the competitive advantages of sukuk over other financing instruments.
The roundtable will discuss the components of a successful sukuk issuance, and the factors that determine the appropriate type or form of the instrument. The discussion will be undertaken with the participation of all parties associated with the process of issuing sukuk.
The event coincides with Sarwa Capital Group’s success in offering sukuk last week, and the readiness of Egypt’s capital market to receive three new offerings during the next two months. These will come from Amer Group, Cairo Investment and Real Estate Development, and an agricultural reclamation company.
By the end of 2020, the total value of sukuk issuances will increase to EGP 5.1bn, following Talaat Moustafa Group (TMG) launching the first offering on the Egyptian market worth EGP 2bn. It was followed by Sarwa Capital Group’s offering, worth a value of EGP 2.5bn. More companies are targeting such issuances in 2021, worth a combined value of more than EGP 10bn.
The roundtable will also discuss issues related to the mechanisms of issuing sukuk and the process of securitisation and parties. It will review how to rehabilitate companies and configure for the issuance of instruments, in addition to the credit rating of the project to the instrument and feasibility studies of the project.
As part of these discussions, participants will look at the legal framework for the process of issuing sukuk, its accounting treatment, and how they appear in budgets.
Sukuk is a financing tool that is more attractive to companies in various economic sectors, as it enjoys multiple financing formulas that are commensurate with the various types of projects.
It is also characterised by its ease of issuance compared to other financing instruments, as it does not require a specific financial position or creditworthiness for the issuing company. It also depends on studying the feasibility of the project for which the sukuk is issued.