Egypt’s NUCA securitization program to get underway:
DEBT WATCH- NUCA’s securitization program to get underway: A consortium made up of CIB and the National Bank of Egypt (NBE) is taking to market EGP 6 bn-worth of securitized bonds for the New Urban Communities Authority (NUCA), sources close to the matter told Al Mal. The issuance is expected to get underway in 1Q2020, the sources said. This is part of a program announced by the authority last month 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).
Egypt’s securitized debt market has been quite active in recent months, with Madinet Nasr Housing (MNHD) being the latest eye an EGP 370 mn issuance last week advised by our friends at EFG Hermes and CIB.
Corrected on 24 December 2019: A previous version of this article mistakenly said that MNHD is a state-owned company. MNHD has been publicly traded on the EGX30 since 1995. Today, the company isn’t majority-owned by the government. Its largest state-owned shareholder is the Holding Company for Construction and Development, with a 15.19% stake, but it also has shareholders including private equity firm B Investments and privately-held BIG Investment Group.