Back to the complete issue
Wednesday, 3 August 2022

NUCA plans huge EGP 20 bn securitized bond issuance

NUCA wants to break its securitization record: The New Urban Communities Authority (NUCA) is seeking regulatory approval for a record-breaking EGP 20 bn securitized bond issuance, the Financial Regulatory Authority (FRA) said in a statement (pdf) yesterday.

WATCH THIS SPACE- The statement is light on information about the prospective issuance. Sources we spoke to at the Housing Ministry and the FRA yesterday said that details are pending regulatory approval.

But we have an idea about when the sale could go ahead: The authority hopes to take the issuance to market by late August or early September, Imane Raouf, partner at Dreny & Partners Law Firm, told Enterprise. Dreny & Partners legal counsel to NUCA on the issuance.

NUCA currently holds the record for the largest securitized issuance in Egypt for a EGP 10 bn issuance closed in 2020. The proceeds were earmarked to finance development of new urban areas including the new administrative capital and New Alamein.

There’s no word on who may have appetite for the issuance, but two years ago the authority placed its EGP 10 bn issuance with EBRD as well as QNB, Attijariwafa and Suez Canal Bank.

BY OUR COUNT- This issuance would take Egypt’s securitization volume in 2022 to almost EGP 37 bn. Companies have sold around EGP 16.6 bn of securitized bonds so far this year, according to data tracked by Enterprise. This exceeds the EGP 15.8 bn taken to market during the whole of 2021.

Advisors: CIB will act as the financial advisor for the issuance, while Dreny and Partners is legal counsel. KPMG Hazem Hassan will serve as auditor.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.