Egyptian Fintech Bokra Raises $58.9M Sukuk to Scale Islamic Microfinance
Egyptian fintech company Bokra has successfully issued a Sukuk valued at EGP 1.82 billion (approximately $58.9 million). This landmark Sharia-compliant issuance is aimed at significantly boosting the company's Islamic microfinance portfolio and expanding its reach in Egypt.
Key Details
Funding Amount: EGP 1.82 billion, equivalent to approximately $58.9 million USD.
Instrument: A Sharia-compliant Sukuk (specifically, a Murabaha Sukuk) issuance.
Purpose: To finance the expansion of Bokra's micro-financing portfolio, providing accessible Sharia-compliant financing solutions.
Target Audience: The funds will support financing for individuals and Small and Medium Enterprises (SMEs) seeking Sharia-compliant options.
Issuance Entity: The Sukuk was issued by Bokra Securitisation B.V.
Arrangement: Arranged by Misr Capital, Commercial International Bank (CIB), and Banque Misr.
Advisory & Subscription: EFG Hermes acted as the financial advisor and subscription manager for the issuance.
Tenor: The Sukuk has a two-year tenor.
Implications
This significant Sukuk issuance is a major step for Bokra and highlights the growing potential and demand for Islamic fintech solutions in the Egyptian market. It represents one of the largest Sukuk issuances by a fintech company in the region, showcasing the viability of alternative, Sharia-compliant financing instruments for scaling operations. The move is expected to drive financial inclusion by catering to a specific segment of the population and businesses requiring Sharia-compliant financial services. For the broader MENA fintech landscape, it sets a precedent for leveraging Sukuk as a funding mechanism for growth, particularly within the Islamic finance sector.
About Bokra
Bokra is an Egyptian fintech company focused on providing innovative financial solutions. The company operates in the micro-financing sector, aiming to make financial services more accessible. With this latest Sukuk issuance, Bokra is significantly strengthening its position within the rapidly growing Islamic finance segment in Egypt.
Looking Ahead
The capital raised through this Sukuk issuance is earmarked for the substantial expansion of Bokra's micro-financing portfolio across Egypt. This will enable the company to reach more individuals and SMEs with its Sharia-compliant financial products. The successful issuance positions Bokra to become a key player in the intersection of microfinance and Islamic fintech in the region, potentially paving the way for future growth and further alternative funding initiatives.
Source: The Startup Scene