The Financial Supervisory Authority has approved the issuance of Sharia-compliant speculative sukuks worth 2 billion pounds for a period of 84 months, starting from the day following the closing date for subscription in the sukuk, for the benefit of the Tharwa Sukuk Company “representing the fourth issue”, in order to finance the project of the beneficiary company (company Contact Finance) (the “beneficiary company”/ the Mudarib).
The company directs the proceeds of the issuance to finance the purchase of cars owned by its customers and/or clients of its subsidiaries and sister companies that engage in the same activity, bringing the total issued sukuks during the current year to 5.251 billion pounds.
Dr. Mohamed Farid, Chairman of the Financial Supervisory Authority, said that the authority is keen to issue all the necessary decisions and measures to develop and develop non-banking financial markets and instruments while maintaining their stability, and enhancing the transparency of the activities in which they are practiced.
Farid added, in a press statement, today, Tuesday, that the latest issuance of Islamic Sharia-compliant sukuk complements the authority’s efforts to develop and develop the capital market by providing various financing solutions and products that meet the needs of various economic entities to develop and grow their businesses, including Sharia-compliant sukuk. Islamic law, which adds to the capital market a new investment product in line with the desire of some investors to invest in investment products that comply with the provisions of Islamic Sharia.
The Chairman of the Authority stated that with the completion of the approval of the issuance of Mudaraba sukuk for the Tharwa Sukuk Company, the number of sukuk issuances since the addition of the controls regulating sukuk in 2018 to date will reach 6 sukuk issuances with a total amount of 12.851 billion pounds, which vary in Islamic financing formulas between Mudaraba or Ijarah ending with ownership. or share.
In the same context, the current version obtained the approval of the Central Sharia Supervisory Committee to ensure its compliance with the provisions of Islamic Sharia before proceeding with the procedures. .
It is worth noting that the total bonds and sukuk issuances that have been approved by the Authority amounted, since the beginning of this year (2022), to about 16.410 billion pounds, which confirms the importance of continuing to develop and improve all procedures related to the offering and listing of sukuk and all debt instruments within the market, due to its availability of Diversified financing solutions that help different economic entities to expand, grow and increase the volume of their business.