A bond issued by Egypt’s New Urban Communities Authority (NUCA), part of the Ministry of Housing, has won The Banker’s “Deal of the Year 2020 – Africa” award in the securitisation category.
The Banker is a sister publication of the Financial Times.
The European Bank for Reconstruction and Development (EBRD) has invested 500 million Egyptian pounds (€29 million equivalent or $31.3 million) in the NUCA’s securitiSation bond.
The Banker’s Deals of the Year awards 2020 recognise the most impressive investment banking transactions across the broad spectrum of global capital markets.
The awarded issuance size of 4 billion pounds was arranged by Sarwa Capital Holding for Financial Investments and Banque Misr, with the EBRD being a major participant and the only international investor to take part in the offering.
It was the second transaction under a 10-billion-pound local currency programme by NUCA with the aim of diversifying its sources of financing and accessing a cost-effective and flexible alternative to traditional bank financing.
The funds raised are particularly impactful, as NUCA has embarked on an ambitious investment plan to develop a number of new cities to accommodate Egypt’s growing population away from the narrow strip of the Nile Delta, the EBRD said in a statement. This will help stimulate the Egyptian economy and create new job opportunities for local people, it added.
In total, the EBRD invested 1.5 billion pounds (€88 million equivalent) in the programme.
“We warmly congratulate our Egyptian partners on winning this prestigious award and we are pleased that we had been able to play a significant role in this successful programme.” Sue Barrett, EBRD Head of Infrastructure for Turkey, Middle East, and Africa, said.
“This landmark bond programme will further support the deepening of the local debt capital markets in Egypt, and contribute to the much-needed diversification of investable EGP assets for the local and international institutional investor base.”
NUCA has developed over 20 cities, with the strong support of the private sector including developers and contractors. Its strategy is to develop new towns on desert land and to redistribute the population away from the Nile Delta, stimulating the country’s economy and creating new job opportunities.
