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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.

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