Bokra, an Egyptian fintech, has successfully raised 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. This marks a key milestone for Bokra as it ventures into the project finance sector with Sharia-compliant debt instruments.
The sukuk issuance, structured with an 84-month term, is Bokra’s first and part of a wider strategy to broaden 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 handled the full structuring and issuance process through its subsidiaries, serving as both the issuer and investment manager. The financing aims to bolster Aman Project Finance’s Sharia-compliant lending portfolio, with a focus on small and medium-sized enterprises (SMEs) in Egypt.
The sukuks, rated BBB+ by the local ratings agency MERIS, are listed on the Egyptian Stock Exchange. Institutional investors, including the Suez Canal Bank, Arab African International Bank,Al Baraka Bank, and Al Ahly Pharos, took part, with Al Ahly Pharos acting as lead arranger and underwriter. Legal, financial, and compliance advisory services were provided by Ali El Din Washahi, Moore, and Baker Tilly, respectively, while Sharia compliance was overseen by a committee of prominent Islamic scholars.
A wider Approach
Ayman El Sawy, Founder and CEO of Bokra, described the issuance as a part of the company’s mission to provide Sharia-compliant, asset-backed financial solutions to a broader range of retail and SME investors.
“We are delighted to complete this issuance, which aligns with our broader vision of providing investment and financing solutions that combine profitability with full adherence to Sharia compliance. Our goal is to reach wider segments of society and foster financial inclusion and sustainable economic development,” said El Sawy.
Hazem Moghazi, CEO of Aman Holding, highlighted the strategic significance of the financing. “This issuance marks a key milestone in strengthening our Islamic finance portfolio. By diversifying our funding sources, we can better support entrepreneurs and SMEs, driving sustainable economic development,” he said.
The issuance follows Bokra’s earlier regulatory achievement, securing a fintech operating license from Egypt’s Financial Regulatory Authority (FRA). The license allows a broad array of non-banking financial services, such as digital customer onboarding, electronic contracting, and record management.
The regulatory approval came about a year after Bokra raised $4.6 million in a pre-seed round, led by DisrupTech Ventures and SS Capital. The funds are being used to launch the Bokra app, broaden investment offerings, and support the company’s regional expansion plans in the Middle East and North Africa (MENA).
Founded in 2023, Bokra offers 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.
Bokra enters the market as Egypt prioritizes financial inclusion, with nearly two-thirds of adults still outside the formal banking system. The platform aims to bridge the gap between traditional financial services and underserved retail and SME investors.
Mohamed Okasha, founder and managing partner at DisrupTech Ventures, highlighted Bokra’s “innovative use of investment instruments” and the “growing demand for alternative investment solutions” as key factors behind the firm’s support for the startup.
Samer Sallam, Chairman of SS Capital, emphasized Bokra’s scalability, noting its potential to expand beyond Egypt into other markets across the MENA region.
New Pricing Strategies in an Unstable Market
Amir Sherif, Executive Director of Debt Instruments at Al Ahly Pharos, stated that Bokra’s issuance introduced a “unique pricing structure” never before used in the Egyptian market, despite the broader market volatility.
The novel structuring approach could provide an alternative route for project financing in a market still hindered by high interest rates and limited credit access for SMEs.
The collaboration also highlights the growing momentum in Egypt’s sukuk market, following government efforts 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, as Islamic bond issuance has typically been reserved for large, established companies like Sarwa Capital and Palm Hills Developments, or state-backed entities. While Egyptian fintechs have mainly focused on payments, lending, and financial inclusion, Bokra has ventured into the sophisticated realm of project financing, raising 3 billion EGP through its Mudaraba sukuk. This move not only demonstrates its ability to navigate complex financial instruments but also positions Bokra as a pioneering force in Egypt’s Sharia-compliant financing sector, potentially redefining the role of fintech startups.
As Egypt’s fintech sector grows, Bokra’s latest move establishes it as a key player in Islamic fintech and project financing. The company’s success in securing institutional backing while adhering to Sharia compliance could set a benchmark for future sukuk issuances in the region.
