Firms advise on landmark Egyptian Islamic financing

Clifford Chance and Matouk Bassiouny have together advised Abu Dhabi Islamic Bank, Banque Audi, Banque Misr, as Senior Mandated Lead Arrangers, and the Islamic Corporation for the Development of the Private Sector (ICD), as Mezzanine Mandated Lead Arranger on and Islamic Shari’ah compliant financial package of around EGP1.8 billion extended to Al Sharkeya Sugar Manufacturing S.A.E (ASSM) for the construction of a sugar production facility in Al Sharkeya Governorate, Egypt.

The finance package (which also included a working capital facility extended by shareholders of ASSM) was signed on April 27, 2014 with an ijara/istisn’a senior facility of EGP1.5 billion and a mezzanine one for USD32 million. 

Once construction is complete, the sugar manufacturing facility is expected to cover around 50% of Egypt’s sugar needs. The participation of local and regional banks and financial institutions is a milestone in the development of the Egypt's Islamic finance market.

Clifford Chance and Matouk Bassiouny jointly structured the EGP1.8 billion facility package, drafted all the relevant senior and mezzanine facility documents and lead the negotiations on behalf of the senior and mezzanine facilities’ providers. The Matouk Bassiouny team was led by partner Mahmoud Bassiouny (Finance & Projects) and the Clifford Chance team was led by partner Mohamed Hamra-Krouha.