CAIRO – 21 July 2020: The European Bank for Reconstruction and Development (EBRD) announced Tuesday supporting Egypt’s New Urban Communities Authority (NUCA) in its plans to diversify funding sources by tapping the debt capital market with an investment of LE 1.5 billion (€86.5 million) in the latest LE 10 billion bond issuance by El Taamir, the securitisation special purpose company of NUCA.
According to EBRD, this support will bring the Bank’s total contribution to LE 3 billion (€173 million) in NUCA’s LE 20 billion bond programme.
“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,” the bank said.
It noted that 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,” it added.
On June 22, EBRD announced Monday supporting the Egyptian Economy with a $ 200 million financing package to National Bank of Egypt (NBE) for trade and for on-lending to local companies impacted by the coronavirus pandemic.