Bokra, an Egyptian fintech company, has recently made headlines by successfully raising 3 billion Egyptian pounds ($58.9 million) through its inaugural sukuk issuance. The Mudaraba sukuks were issued for Aman Project Finance, a subsidiary of Aman Holding, signaling Bokra’s foray into the project finance sector with Sharia-compliant debt instruments.
This milestone sukuk issuance, structured with an 84-month term, represents Bokra’s first step in broadening its range of asset-backed Islamic finance products. These offerings include investments in gold, real estate, and custom financial instruments designed to help users safeguard their savings from inflation.
Bokra managed the entire structuring and issuance process through its subsidiaries, acting as both the issuer and investment manager. The financing aims to strengthen Aman Project Finance’s Sharia-compliant lending portfolio, focusing on supporting small and medium-sized enterprises (SMEs) in Egypt.
The sukuks, rated BBB+ by local ratings agency MERIS, are now listed on the Egyptian Stock Exchange. Institutional investors, including Suez Canal Bank, Arab African International Bank, Al Baraka Bank, and Al Ahly Pharos, participated in the issuance, with Al Ahly Pharos serving as the lead arranger and underwriter. Legal, financial, and compliance advisory services were provided by Ali El Din Washahi, Moore, and Baker Tilly, respectively, with Sharia compliance overseen by a committee of prominent Islamic scholars.
Ayman El Sawy, Founder and CEO of Bokra, expressed his satisfaction with the issuance, emphasizing the company’s commitment to providing Sharia-compliant, asset-backed financial solutions to a wider range of retail and SME investors.
Hazem Moghazi, CEO of Aman Holding, highlighted the strategic importance of the financing, stating that it marks a significant step in strengthening their Islamic finance portfolio and supporting entrepreneurs and SMEs for sustainable economic development.
This sukuk issuance follows Bokra’s previous regulatory achievement of securing a fintech operating license from Egypt’s Financial Regulatory Authority (FRA). This license enables the company to offer a wide range of non-banking financial services, including digital customer onboarding, electronic contracting, and record management.
Founded in 2023, Bokra specializes in asset-backed, personalized financial planning. Through its digital platform, users can invest in fractional ownership of various assets, with portfolios tailored to match individual risk profiles.
As Egypt continues to prioritize financial inclusion, with nearly two-thirds of adults still outside the formal banking system, Bokra aims to bridge the gap between traditional financial services and underserved retail and SME investors.
The successful sukuk issuance by Bokra introduces a new pricing structure to the Egyptian market, showcasing a unique approach to project financing amid market volatility. This collaboration highlights the growing momentum in Egypt’s sukuk market, following government initiatives to expand Islamic finance instruments and diversify funding sources to strengthen capital markets.
Bokra’s entry into Egypt’s sukuk market is a significant achievement, positioning the company as a pioneering force in Sharia-compliant financing and project finance. This move not only showcases Bokra’s ability to navigate complex financial instruments but also sets a new standard for fintech startups in the region.
As Egypt’s fintech sector continues to grow, Bokra’s success in securing institutional backing while upholding Sharia compliance sets a benchmark for future sukuk issuances in the region. The company’s innovative use of investment instruments and the rising demand for alternative investment solutions have solidified its position as a key player in Islamic fintech and project financing. The COVID-19 pandemic has had a profound impact on the world, affecting nearly every aspect of daily life. From the way we work and socialize to the way we shop and travel, the virus has forced us to adapt to a new normal.
One of the sectors that has been hit particularly hard by the pandemic is the travel industry. With international borders closed, flights grounded, and hotels shuttered, the tourism industry has seen a dramatic decline in revenue. According to the World Travel and Tourism Council, the industry has suffered losses of over $1 trillion due to the pandemic.
As countries around the world continue to grapple with the virus, the future of travel remains uncertain. Many airlines have been forced to lay off staff and cut routes, while hotels have seen a sharp decline in bookings. Cruise lines, once a popular vacation choice for many, have also been severely impacted, with several high-profile outbreaks of the virus occurring on board ships.
But despite the challenges facing the travel industry, there is reason to be hopeful. As countries begin to roll out vaccines and implement stricter safety measures, there is hope that travel will slowly begin to rebound. Some airlines have already started offering pre-flight testing for passengers, while hotels are implementing enhanced cleaning protocols to ensure the safety of guests.
In addition, the rise of remote work has opened up new possibilities for travel. With many companies now allowing employees to work from anywhere, more people are choosing to take extended trips or work from exotic locations. This trend, known as “digital nomadism,” has the potential to revitalize the travel industry and provide a much-needed boost to economies that rely on tourism.
As we look towards the future, it is clear that the travel industry will need to adapt to a new reality. From implementing stricter health and safety measures to catering to the needs of remote workers, the industry must be prepared to meet the changing demands of travelers in a post-pandemic world. Only time will tell how the industry will ultimately recover, but one thing is certain – travel will never be the same again.
