NUCA to issue EGP 10 bn securitized bonds in 2H 2019-2020
DEBT WATCH- NUCA moving to issue another EGP 10 bn in securitized bonds to fund new cities: The New Urban Communities Authority (NUCA) is planning to securitize up to EGP 10 bn of receivables from partnered private sector real estate developers in the second half of its current fiscal year (January-June 2020), sources from the Housing Ministry said. The authority will use the proceeds to complete projects in new cities, they said, without going into specifics. NUCA is currently calculating how much it is due from the partnership contracts, but will also consider backing the bonds with receivables from auctioned land. NUCA currently has partnerships with developers including SODIC, Palm Hills, Mountain View, Al Ahly for Real Estate Development, Iwan, and Ora Developers.
The news came a day after the authority completed a EGP 4 bn securitized bond issuance, for which Sarwa Capital and Banque Misr acted as lead managers, arrangers and co-underwriters.