31-01-2024
ADIB-Egypt arranges largest Sharia-compliant syndicated financing for Giza Systems, VAS worth EGP 2.8 billion
The deal was oversubscribed 1.7 times through a banking consortium consisting of major regional and local banks.
The transaction marks Egypt's first dual-structured financing vehicle compliant with Sharia principles in Mudaraba and Murabaha formats. It aims to refinance existing facilities with better terms and lower financing costs, supporting the growth, expansion, and development of Solutions by stc’s operations across the region.
Mohamed Aly, ADIB-Egypt CEO and MD, said: Arranging Egypt's largest syndicated Islamic financing deal underscores our capability to provide innovative financing solutions and reflects the confidence of the major participating institutions in the consortium.
Cairo, January 31, 2024 - Abu Dhabi Islamic Bank-Egypt (ADIB-Egypt) and its investment arm, Abu Dhabi Islamic Capital (ADI Capital), have announced the successful arrangement of a landmark Sharia-compliant syndicated financing deal for Giza Systems and its subsidiary VAS Integrated Solutions. Valued at about EGP 5.5 billion, the deal is considered Egypt's largest Sharia-compliant syndicated financing transaction to date. The financing is guaranteed by Arabian Internet and Communications Services Company (Solutions by STC), a leading firm in digital transformation across Saudi Arabia and the region.
The transaction aims to refinance existing facilities with favorable terms and reduced financing costs, aiming to accelerate the growth, expand operations, and foster development across Solutions' regional subsidiaries.
Several regional banks, along with a consortium of major banks operating in Egypt, participated in the financing. These included Ahli United Bank in Bahrain and Egypt, Bank ABC in Bahrain and Egypt, Abu Dhabi Commercial Bank in the UAE and Egypt, and ADIB-Egypt, all playing key roles as initial mandated lead arrangers. Additionally, Credit Agricole Egypt, Emirates NBD Egypt, and Arab Bank Egypt acted as lead arrangers. Al Baraka Bank Egypt also participated in the financing as a contributing bank.
ADIB-Egypt led the financing as the financing agent, escrow agent, global investment agent, and account bank, while ADICapital served as the sole financial advisor and bookrunner.
This transaction is considered Egypt's first dual-structured financing facility that complies with Sharia principles, incorporating Mudaraba and Murabaha formats. It aims to bolster the expansion of both companies, facilitate entry into new markets, boost their project portfolios, and advance integrated technological solutions across diverse sectors, such as telecommunications, infrastructure, oil and gas, transportation, smart buildings, and manufacturing.
Mohamed Aly, ADIB-Egypt CEO and Managing Director, said that arranging Egypt's largest syndicated Islamic financing deal reflects the bank’s capacity to offer innovative financial solutions, reflecting trust placed by major participating institutions in the consortium. He emphasized the bank's continuous dedication to meeting the needs of large enterprises, enabling them to successfully implement their plans and projects, reflecting positively on their development initiatives. “Such efforts reinforce our pivotal role as a steadfast supporter of the Egyptian economy at large, especially in the information technology sector,” Aly added.
Hatem El-Demerdash, ADI Capital CEO and Managing Director, expressed his excitement about the company’s leading role in the consortium as the sole financial advisor and bookrunner. He stressed that the move reinforced ADI Capital's position both locally and regionally in Sharia-compliant syndicated financing.
Giza Systems, a pioneer in digital transformation and system integration across the Middle East and Africa, excels in designing specialized technology solutions for multiple industries, including telecommunications, utilities, oil and gas, transportation, and others. These solutions cater to an expanding customer base across more than 25 countries. Similarly, VAS Integrated Solutions offers integrated information technology solutions across various market sectors, focusing on data centers, virtual simulation, middleware software, and cloud-based digital transformation solutions.
Legal consultations for the financing facility were provided by Baker McKenzie and Sarie-Eldin & Partners, serving as advisors to the participating banks. Addleshaw Goddard, Sharkawy and Sarhan acted as legal advisors to Giza Systems and VAS Integrated Solutions.
