By Nibal Zgheib
A bond issued by Egypt’s New Urban Communities Authority (NUCA), in which the European Bank for Reconstruction and Development (EBRD) invested EGP 500 million (€29 million equivalent) has won the “Deal of the Year 2020 – Africa” award in the securitisation category by The Banker, a sister publication of the Financial Times.
The Banker’s Deals of the Year awards 2020 celebrate the most impressive investment banking transactions across the broad spectrum of global capital markets.
The awarded issuance size of EGP 4 billion 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 participate in the offering.
It was the second transaction under an EGP 10 billion 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. This will help stimulate the Egyptian economy and create new job opportunities for local people.
In total, the EBRD invested EGP 1.5 billion (€88 million equivalent) in the programme.
Sue Barrett, EBRD Head of Infrastructure for Turkey, Middle East and Africa said: “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. 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 more than 20 cities, with the strong support of the private sector including developers and contractors. NUCA’s strategy is to develop new towns on desert land and to redistribute the population away from the Nile Delta, stimulating the economy and creating new job opportunities.