EBRD invests EGP 1.5 bn in Egypt’s NUCA securitization

21 / 07 / 2020

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD) invested EGP 1.5 billion in Egypt’s latest EGP 10 billion bond issuance by El Taamir, the securitization special purpose company of the New Urban Communities Authority (NUCA).

This securitization process falls within the framework of Egypt’s plans to diversify funding sources.

The EBRD investment brings its total contribution to EGP 3 billion (€173 million) in the NUCA’s EGP 20 billion bond program.

This alternative way of financing urban infrastructure development will help NUCA to free up much-needed resources and continue developing new sustainable towns on desert land with the aim of relocating some of Egypt’s population away from the narrow strip of the Nile Delta. This will help stimulate the economy and create new job opportunities.

NUCA has developed more than 20 cities in Egypt, attracting strong support of the private sector including developers and contractors.

The EBRD’s subscription will also support the development of the local currency bond market in Egypt. The securities will be listed on the Egyptian stock market. As the largest issuance in the history of the local capital bond market with a maturity among the longest available, the issuance contributes to the deepening of the local capital market.