Decision of the Board of Directors of the Authority No. (35) of 2014

Dated 12/3/2014

Regarding the Credit Rating of Debt Instruments Invested in by Investment Funds

Board of Directors of the General Authority for Financial Supervision

Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations, and the decisions issued in implementation thereof;

and the Central Deposit and Registration of Securities Law issued by Law No. (93) of 2000 and its executive regulations;

and Law No. (10) of 2009 regarding the regulation of supervision over non-banking financial markets and instruments;

and Presidential Decree No. (191) of 2009 on the provisions organizing the Egyptian Exchange and its financial affairs;

and Presidential Decree No. (197) of 2009 issuing the Statute of the General Authority for Financial Supervision;

and upon the approval of the Authority's Board of Directors at its meeting held on 12/3/2014;

Decided

(Article One)

Except for securities and financial instruments issued or guaranteed by the Egyptian Government, investment funds shall, when investing a portion of their funds in bonds or financing sukuk, comply with the following:

1. The minimum credit rating of the issuer, the sukuk, the bond portfolio, or the syndicated loan portfolio shall not be lower than the investment grade (BBB-) or its equivalent at the time of purchase.

2. The rating shall be conducted by one of the credit rating companies approved by Decision of the Board of Directors of the Authority No. (71) of 2009.

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(Article Two)

Investment funds shall disclose annually to the general body of security holders any changes in the credit rating of the bonds or financing sukuk in which they invest.

(Article Three)

This Decision shall be published in the Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and shall take effect as of the day following its publication in the Egyptian Gazette.

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Chairman of the Board
Sherif Sassi

General Authority for Financial Supervision
Office of the Chairman
46076

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