Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

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Chairman of the Authority

Board of Directors Resolution No. (119) of 2020 dated 26/7/2020

Regarding the Licensing Criteria for Sukuk Issuance Companies to Deal in More Than One Sukuk Issue

The Board of Directors of the Financial Regulatory Authority

Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations; and on Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and on Board of Directors Resolution No. (176) of 2018 regarding the establishment and licensing requirements for Sukuk issuance companies; and upon the approval of the Authority's Board of Directors in its session held on 26/7/2020;

Resolved

(Article One)

To license a Sukuk issuance company to deal in one Sukuk issue, the following criteria must be met:

1- The company's capital for the Sukuk issuance must be fully paid up for each issue.

2- Submit a commitment to maintain separate accounts for each issue, which entails restricting the rights of holders of each Sukuk issue to the assets associated with it.

3- Submit a declaration from the company's external auditor confirming the availability of necessary capabilities to maintain separate accounts for each issue.

4- A commitment from the payment agent to maintain separate accounts for each issue, in cases where the company appoints a payment agent for more than one issue.

5- Submit a statement on the performance of previous issues, detailing the status of Sukuk return payments and amortization, to be certified by the company's auditor and the payment agent appointed for the issue.

6- Commitment, in case the company wishes to issue more than one Sukuk for the same beneficiary or one of its affiliates, to submit a technical summary of those issues for performance assessment.

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(Article Two)

This Resolution shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect as of the day following its publication in the Egyptian Gazette.

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Chairman of the Board of Directors of the Authority Dr. Mohamed Omran

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