The best Islamic local currency deal of the year 2023

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The best Islamic local currency deal of the year 2023

Elsewedy Electric’s EGP3 billion ($97 million) Sharia-compliant multi-purpose syndicated facility.

CEO of Egypt's El Sewedy Electric Ahmed El Sewedy looks on during an interview with Reuters in Cairo
Ahmed El Sewedy, El Sewedy Electric. Photo: Reuters

Elsewedy Electric Company is one of Egypt’s longest established corporates, having been set up as an equipment trading firm in 1938. It has subsequently expanded into construction, engineering, wire, cable and digital solutions and operates 31 production facilities around the world out of 48 international offices.

So, Elsewedy’s management team has had long experience in dealing with corporate challenges, but the fallout from Covid-19 and the inflationary forces subsequently unleashed have been a game-changer.

The pandemic interrupted the firm’s plans to expand into new export markets in north America and Europe. These plans were further disrupted by the effects of Russia’s invasion of Ukraine, surging global interest rates and a devaluation of the Egyptian pound.

Therefore, access to finance has been key. In September, the firm signed a Shariah-compliant multipurpose syndicated facility to fund expansion. The deal was lead managed by ADIB Egypt with participation from Banque Misr, Al Baraka Bank, Al Ahli Bank of Kuwait, MidBank, the Industrial Development Bank, the Agricultural Bank of Egypt and the Egyptian Arab Land Bank.

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