Bokra has completed its first major sukuk issuance raising $58.9m through Mudaraba sukuks for Aman Project Finance

Cairo 06 May 2025:

Egyptian fintech Bokra has completed its first major sukuk issuance, raising 3 billion Egyptian pounds ($58.9 million) through Mudaraba sukuks for Aman Project Finance, a subsidiary of Aman Holding. The issuance marks a significant milestone for Bokra, signalling the company’s entry into the project finance space through Sharia-compliant debt instruments.

Structured with an 84-month term, the sukuk issuance is the first of its kind for Bokra and forms part of a broader strategy to expand its suite of asset-backed, Islamic finance products. Other offerings include investments in gold, real estate, and tailored financial instruments aimed at helping users protect savings against inflation.

Bokra managed the entire structuring and issuance process through its subsidiaries, while acting as both issuer and investment manager. The financing is intended to support Aman Project Finance’s Sharia-compliant lending portfolio, focusing on small and medium-sized enterprises (SMEs) in Egypt.

The sukuks, rated BBB+ by local ratings agency MERIS, are listed on the Egyptian Stock Exchange. Institutional investors such as the Suez Canal Bank, Arab African International Bank, Al Baraka Bank, and Al Ahly Pharos participated, with Al Ahly Pharos serving as lead arranger and underwriter. Legal, financial, and compliance advisory services were provided by Ali El Din Washahi, Moore, and Baker Tilly respectively, while the Sharia compliance was overseen by a committee of prominent Islamic scholars.

A Broader Strategy

Ayman El Sawy, Founder and CEO of Bokra, framed the issuance as an extension of the company’s mission to offer Sharia-compliant, asset-backed financial solutions accessible to a wider base of retail and SME investors.

“We are pleased to complete this issuance, which aligns with our broader vision to offer investment and financing solutions that combine profitability with a full commitment to Sharia compliance. Our aim is to reach broader segments of society and promote both financial inclusion and sustainable economic development,” said El Sawy.

Hazem Moghazi, CEO of Aman Holding, also emphasised the strategic importance of the financing. “This issuance represents a significant milestone in strengthening our Islamic finance portfolio. By diversifying our funding sources, we can enhance our ability to support entrepreneurs and SMEs, contributing to sustainable economic development,” he said.

The issuance follows Bokra’s earlier regulatory breakthrough, when it secured a fintech operating license from Egypt’s Financial Regulatory Authority (FRA). The licence covers a wide range of non-banking financial services, including digital customer onboarding, electronic contracting, and record management.

The regulatory green light came roughly a year after Bokra’s $4.6 million pre-seed round led by DisrupTech Ventures and SS Capital. The funding is being used to launch the Bokra app, expand investment offerings, and support the company’s regional expansion ambitions across the Middle East and North Africa (MENA).

Founded in 2023, Bokra operates on a model of offering asset-backed, personalised financial planning. Users are able to invest in fractional ownership of diverse assets through a digital platform that matches individual risk profiles with tailored portfolios.

Bokra’s market entry comes at a time when Egypt’s financial inclusion agenda remains a government priority, with nearly two-thirds of the adult population still outside the formal banking system. The platform positions itself as a bridge between traditional financial services and untapped retail and SME investors.

Mohamed Okasha, founder and managing partner at DisrupTech Ventures, cited Bokra’s “innovative use of investment instruments” and the “growing demand for alternative investment solutions” as reasons for backing the startup.

Meanwhile, Samer Sallam, Chairman of SS Capital, pointed to Bokra’s scalability, highlighting its potential to expand beyond Egypt into other MENA markets.

New Pricing Models in an Unstable Market

According to Amir Sherif, Executive Director of Debt Instruments at Al Ahly Pharos, Bokra’s issuance introduced a “unique pricing structure being deployed for the first time in the Egyptian market,” despite broader market volatility.

The novel structuring approach may offer an alternative pathway for project financing in a market that remains constrained by high interest rates and limited credit access for SMEs.

The collaboration also underscores increasing momentum in Egypt’s sukuk market, following the government’s initiatives to expand Islamic finance instruments as part of wider efforts to diversify funding sources and deepen capital markets.

Bokra’s entry into Egypt’s sukuk market is a remarkable feat, as the issuance of Islamic bonds has traditionally been the domain of large, mature companies such as Sarwa Capital and Palm Hills Developments, or even state-backed entities. While Egyptian fintechs have focused largely on payments, lending, and financial inclusion, Bokra has ventured into a rare and sophisticated territory typically reserved for real estate giants and financial conglomerates. By raising 3 billion EGP through its Mudaraba sukuk, Bokra not only showcases its ability to navigate complex financial instruments but also highlights its unique position in the market. This achievement marks a bold statement of ambition, as it positions Bokra as a pioneering force, potentially redefining the role of fintech startups in Egypt’s Sharia-compliant financing sector.

With Egypt’s fintech sector expanding rapidly, Bokra’s latest move positions it as a key player in Islamic fintech and project financing. The company’s ability to attract institutional backing while maintaining Sharia compliance could set a precedent for future sukuk issuances in the region.