Al Ahly Pharos Investment Banking, the investment banking arm of the National Bank of Egypt, announced that it acted as financial advisor, lead manager, book-runner, and underwriter for the successful closure of Al Ahly Sukuk’s first issuance in the form of Musharaka Sukuk, valued at EGP 2.8 bn, Invest-Gate reports.

The issuance will finance the Bab Masr project, developed by Bab Masr Development S.A.E., a company fully owned by Hassan Allam Construction S.A.E. The offering was met with strong investor demand, achieving oversubscription before closing.

This landmark transaction marks the first-ever Musharaka Sukuk for the issuer and represents a significant milestone in the evolution of Egypt’s debt capital market, particularly as it aims to finance a greenfield mixed-use real estate project.

Bab Masr is a mixed-use complex located in Mohandiseen. The project, developed by Hassan Allam Holding, spans 100,000 m² and includes 17 buildings dedicated to commercial, administrative, residential, medical, and garage spaces.

It forms a key part of the development surrounding the Upper Egypt railway station, Egypt’s largest railway station, which reduces congestion for southbound commuters and connects to Cairo Metro’s third line, monorail, and BRT system.

Ahmed Heider, CEO and Managing Director of Al Ahly Pharos Investment Banking Group, stated, “This transaction is a strong testament to the depth and strength of Al Ahly Pharos’ advisory platform. It reinforces our strategic vision to drive innovation and broaden accessibility within Egypt’s capital markets across all DCM, ECM, and M&A. As more corporates actively pursue alternative financing tools, we remain committed to leading the evolution of capital market instruments aligned with the broader vision of NBE Group to deliver a fully integrated financial service platform.”

Mohy-Eldin Abdin, Group CFO of Hassan Allam Holding, remarked, “This Sukuk issuance marks a significant milestone in Hassan Allam Holding’s financing strategy. The strong participation of leading financial institutions, including the National Bank of Egypt and Suez Canal Bank as underwriters, along with additional participation from ADCB, IDB, and SAIB, reflects strong investor confidence in our vision and the broader potential of diversified debt instruments. We are proud to have partnered with Al Ahly Pharos alongside a strong syndicate of advisors and institutions who played key roles in the successful execution of this transaction.”

Amir Sherif, Managing Director and Head of DCM at Al Ahly Pharos, added, “This transaction marks a significant milestone not just as our first Musharaka Sukuk issuance but as a clear step forward in realizing our broader vision for Egypt’s debt capital markets. At Al Ahly Pharos, we are committed to offering tailor-made financial solutions, both conventional and non-conventional, that respond to our clients’ diverse and evolving needs. Sukuk is just one piece of the puzzle; this is only the beginning of our hopes and aspirations for the expansion and deepening of the market. Our ambition is to lead in structuring innovative, flexible, and pioneering instruments that fuel corporate growth and market development.”