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ADIB Egypt leads EGP 5.8B joint financing initiative for Giza Systems

The Clap

Abu Dhabi Islamic Bank (ADIB) – Egypt is spearheading a Sharia-compliant joint financing initiative for Giza Systems amounting to EGP 5.8 billion, as reported by banking sources to Asharq Business.

What

The EGP 5.8 billion loan includes a USD 90 million segment. Another source affirmed to Asharq Business that banks participating in funding the company include ADIB Egypt, Emirates NBD, Arab International Bank, and Ahli United Bank.

So What

One banker explained to Asharq Business that the purpose of the financing is to “settle existing loans and transition the company’s financing structure to an Islamic system.”

Some Context

Giza Systems is an Egyptian company that’s 88.19%-owned by the Saudi Exchange-listed Arabian Internet and Communication Services Company (Solutions), a subsidiary of the Saudi Telecom Company (STC).

It plans to allocate 70% of its 2024 investments (USD 140 million) to the Saudi market, according to Osama Sorour, the CEO, in previous statements to Asharq Business.